Previously I did remark to some that the sub-prime effects are not yet seen in the economy. Now I can say the evidence has arrived.
The city council of Vallejo, California, the 6th highest foreclosure rate in the U.S., has just voted to have the city file for bankruptcy!
Yes, you have seen correctly. A city filing for bankruptcy. The dominoes are starting to fall. There would be more soon. The national foreclosure rate in the US is 1 out of 519 US households for April!
So what effect does this have to do with the world? Easy... America is the biggest consumer of products and services in the world. If you do not have a roof over your heads, do you think you can consume?
Stay tuned for more dominoes to fall...
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