Progress Report

The 'cash for clunkers' program is encouraging consumers to increase their debt, so I'm not surprised that retails sales are lackluster at best. The economy is still contracting, regardless of the U.S. government's efforts to artificially kick it in the rear.

Foreclosures in July are 32% higher than July 2008; close to 7% higher than June 2009. The medium price of homes dropped close to 16% in the second quarter. In my opinion, this is the measurement stick to watch. When this area turns the corner, then there will be the opportunity to move forward.

Another statistic to watch is consumer and commercial bankruptcy filings. For the former, there was increase of 34% over the first quarter of 2009, with California being the leader in filings. As I have mentioned before, the commercial sector has yet to unfold as to the depth of their financial struggle.