Matt Towery

The so-called housing recovery will come to a screeching halt when the markets finally have to face the fact that the economy can no longer be propped up by the Federal Reserve and the unemployment rate starts to march sideways, if not toward higher unemployment.

And as a precursor to what could be a hard fall for the economy, reports suggest that investors have increasingly been forced into so-called "junk bonds" in order to try to generate a return on investment. This is a direct result of the Fed's insistence that interest rates remain low with little or no return to investors. Oh, boy, a rush to junk bonds, revisions in the gross domestic product projection and money flowing to Wall Street hotshots. If that doesn't sound familiar, then you must be pretty new to the game of life.

In 2006, I wrote a column about how the housing market was going to collapse. It was one of the times I got lucky and was correct. Wikipedia now notes that 2006 was the height of the housing market.

There are other times I have been dead wrong. So I'm not claiming to be a source of investment guidance or some financial guru.

But there are just too many similar circumstances taking place -- similar to the lead up to prior recessions or even the financial meltdown of 2008. The Fed just cannot keep printing cheap money, people cannot continue flocking to junk bonds and average workers cannot continue to face pink slips without something hitting the fan at some point. And when it does, this jobless, humorless, miserable "recovery" will clearly either be over or one that never really existed in the first place.

Matt Towery

Matt Towery is a pollster, attorney, businessman and former elected official. He served as campaign strategist for Congressional, Senate, and gubernatorial campaigns. His latest book is Newsvesting: Use News and Opinion to Grow Your Personal Wealth. Follow him on Twitter @MattTowery