SOS Look at the dark side

US economy (the dark side no reveal by the media)

1. housing sales dropped in May after tax credit was lifted in April 2o1o


2. unemployment did not improve


3. bank credit still schrinking


4. savings rate improve


5. consumer price show no sign of inflation


6. more bank goes bankrupt


7. more debt turns bad


8. commercial real estate continue to plunge

MyView

1. The stimulus did buy some time


2. The zero rate did buy some time


3. The bailout did buy some time


4. The government intervention did buy some time

However, all actions take above is "bad" for the economy in the long run, due to misallocation of resources, bailing out the incompetence, socialising profit, debasing the currency in long run, causing sovereignty risk.

In short, those steps taken are NOT SUSTAINABLE and have bad side effects. The question now is when will be the 2nd tsunami coming. I give it maximum ONE YEAR.