Professor Elam

Friday March 5 2010

I have intentionally quoted from a couple of the new links I set up to encourage students to read them as well. Today Mish makes these observations. I agree and this reflects why I teach accounting. The study of accounting leads to various professional designations which are attained through examination. The predictions below support my advice to learn what certifications are available, make plans to obtain a certification, and begin integrating that study now in your college courses.  Yes I believe San Antonio, TX will weather this storm much better than say Flint, Michigan, but that means the slow down will finally be apparent here well after it is underway in Michigan, and Greece. Remember, I urged  you to start now….

Implications

• The labor pool participation rate will stay elevated instead of contracting as much as one might have thought. In turn …
• The unemployment rate will stay elevated longer than economists think.
• Kids out of college will have a harder time finding jobs.
• Kids out of college will be forced to move back in with their parents.
• Kids out of college will have no way of paying back college loans.
• Parents who co-signed for their kids education will come to regret it.
• The above factors will pressure discretionary spending of both boomers and those just out of college.
• Those out of college will postpone family building.
• Postponement of family building will further pressure housing prices.
• Bankruptcies, foreclosures, credit card defaults, and walk-aways will continue longer than economists think.