Rex Miller

There are a lot of mixed signals regarding the current “economic recovery.” I found this post from The Pragmatic Capitalist blog very useful to see how some key underlying fundamentals will work through the economy.

My takeaways include:

1. Companies will continue to shed jobs but show improved P&L’s through cost cutting – not growth.
2. Massive loan resets and required refinancing in both residential and commercial real estate will see estimated defaults of $1 trillion in commercial real estate alone.
3. This is not the kind of recession where we hunker down and wait it out. This has radically reset the thinking of companies moving forward. We’re in the trough of a “New Normal.”

When you read the recap below click to the original posting to see the charts that help put the pieces of the puzzle together. You will see the link below at “This guest post originally appeared at the author’s blog.”

If there is a silver lining – perhaps this will bring business, their local communities, civic organizations and churches together to discover new ways to help each other and reinvent ourselves as we move forward.

Tags: collapse, depression, economy, investment, real estate, recession, strategy, wall street