Consumer Predictions For 2011 Will You Be Ready?
July 16th, 2010 Filed under: Economy — Economic Author
Prediction #1- Fuel efficient car prices, both new and used, will go up, up, up. As the BP oil spill continues, efforts to cap the well will prove only partially successful. This problem will help further the agenda of cap and trade and carbon credits. This will, by design, help bolster oil prices as fears of restricted production from government regulations force markets up. The result for you as a consumer will be higher gas prices, but also, as we saw in the last gas price increase, higher demand for fuel efficient cars. So, if you are in the market for a vehicle, right now is the time to buy a fuel efficient car while prices remain stable.
Prediction #2- Foreclosures continue to drive home prices down, as banks try to unload. Right now a glut of foreclosed homes are in the possession of big banks. The continued economic crisis will force banks to unload this inventory, driving home prices down even further, dampening the effort of a housing market rebound. As a consumer, if you have the ability and very good credit, you can find the home of your dreams at a bargain price. But, be wary of this strategy if you have even small credit issues, since banks will continue their tight credit policies or charge over-inflated borrowing costs to those with less than A credit in order to suck up as much profit as possible.
Prediction #3- Sneaky local banks. Your local “friendly” bank may not be so friendly as they begin to charge fees for checking accounts of normally “free” checking. This will be due to the new regulations prohibiting banks from charging over draft fees from ATM cards. Banks will try to get you opt-out of this regulation or provide confusing documentation about the subject. Also, local banks will continue to go under as they get squeezed by the big corporate/government backed giants.
Prediction #4- The PO’ed consumer. In general, 2011 will be a year of consumers that are generally unhappy with the state of events. Although government efforts will center around the consumer going out and spending money they do not have (just like they do), smart consumers will save money, spend less and become more self-sufficient.
Mike George wants readers to prepare for the worst case economic scenario. You can read more information about financial defense strategies from the double dip recession that is coming at Recession Defense.
