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The 'R' Word

Amy Campbell

March 5, 2008

1 Min Read
The 'R' Word

Well, it's being acknowledged: the R wordrecessionin referring to the U.S. economy. But not, it seems, domestically. The Herald Sun, published in Melbourne, Australia, had this headline yesterday: U.S. recession finally hits. On Feb. 29, an article in Globeandmail.com, the online news section of Canadas Globe and Mail, spoke about the downturn in the U.S. economy, claiming a recession is imminent. And yesterday, The Guardian, a U.K. newspaper, ran an article headlined, Dollar slides on grim U.S. economic outlook.
 
So, why do we not see much real discussion about the possibility of U.S. recession in this country? Headlines have been screaming for weeks about the beating the lending institutions have taken from the sub-prime debacle. The nation's largest mortgage holder, Countrywide Financial, was just rescued by Bank of America.
 
Thousands of people lured into buying mortgages beyond their means are facing foreclosure. They know they're in a recession.
 
But this blog is not all about doom and gloom. It seems the R word is generating a lot of the P wordprofitfor self-storage, as I found this heartening note in The Motley Fool. Public Storage has increased its dividend payout by 10 percent.

The Fool predicts the wave of foreclosures will cause homeowners downgrading to smaller homes to use self-storage facilities to house excess goods. So, maybe the R word does not apply to the self-storage industry. Lets hope not. Let me know your thoughts.

About the Author(s)

Amy Campbell

Editor, Inside Self Storage

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