The Economy's Tipping Point

This column was written by CBS News Early Show co-anchor Harry Smith.

Don't look now, but the U.S. economy might be headed for serious trouble. Yeah, I'm the guy who has been sounding similar warnings for more than a year now about this, but more recent numbers on foreclosures and loan delinquencies continue to get worse.

According to Thursdays Wall Street Journal, almost one in 20 U.S. mortages that exceed the value of the homes they're borrowed against is soon to be 10 percent.

Retail sales are falling and credit card and home equity debt just continue to pile up. Unemployment is still low, but last month the country had a net loss of 80,000 jobs. Food prices are up significantly, as is the cost of fuel.

So maybe we'll soon be sprinkling some inflation on this woeful stew on numbers. The candidates and congress continue to wrangle over possible solutions and remedies. As for the White House? The president said this week that things will turn around by the end of the year.



Harry's daily commentary can be heard on many CBS Radio News affiliates across the country.