Not looking good...

Are we already in recession?:

The Philadelphia Fed reported Tuesday that the economy shrank in 23 states last month, including Ohio, Missouri and Arizona, and was stagnant in seven others. California and Florida, with their plunging home values, may soon join the recession list.

And the Real Estate:

For prices to return to the old norm, they would still need to fall 30 percent across much of Florida, California and the Southwest and about 20 percent in the Northeast. This could happen quickly, or prices could remain stagnant for years while incomes and rents caught up.

And the bottom line is:

As is already happening, banks will become less willing to lend money, households will become less willing to spend money they don’t have and investors will become more alert to risk.

Here is the full article.

Stocks Fall

Stocks fell all over the world due to the US recession fears: India's Sensex fall's 7.4% on Monday. Since Jan 1st it lost close to 4000 points.

And it's just not in India, the markets fell all over the world. As today is MLK holiday for US markets, let's see what happens on Tuesday.

Accelerating Foreign Capital

Accelerating Foreign Capital into US:

The weak dollar has made American companies and properties cheaper in global terms, particularly for European and Canadian buyers. Even as Americans confront the prospect of a recession, economic growth remains strong worldwide, endowing oil producers like Saudi Arabia and Russia and export powers like China and Germany with abundant cash.

.....

“The forces sucking in this capital are much bigger than the political forces,” said Mr. Garten, the Yale trade expert. “If there is a big controversy, it will be between Washington on the one hand and corporate America on the other. In that contest, the financiers and the businessmen are going to win, as they always do.”

Not sure how this will turn out in the end. But I do think it's needed the most in the current situation.