The country is celebrating its new leadership today, but the storm clouds are gathering and the horizon looks grim. Yes, the Dow dropped almost five percent today and the nasdaq was off even more.
While the trouble surrounding mortgages spent several years brewing, the next crisis could come much quicker. Some people are suggesting that a decline in consumer spending, hastened by the lack of cash from home equity, will soon paralyze commercial real estate. People are just not going to be shopping at the mall as much. They are going to wear that sweater another season. They are going to keep their old flat screen. They are not going to go out and charge new drapes and some nice pillow cases.