Tuesday’s FOMC meeting will be remembered for decades to come as the Federal Reserve brings interest rates down to the lowest level this generation has ever seen. With 2 realistic options on the table and economist and traders divided on how much the Fed will cut interest rates, the only certain outcome is significant [...]
Entries Categorized as 'recession'
December 15, 2008
December 11, 2008
The US dollar is tanking as jobless claims rise by the largest amount since November 1982, 26 years ago. As I have suspected, it is the 1980s all over again.
This confirms that the 533k drop in non-farm payrolls last month will not be the bottom in the labor market. When claims first [...]
December 2, 2008
There has been 3 recessions in the past 30 years. In each of those recessions, the dollar weakened in the first six months of the recession, then gained strength in the next six. Twelve months into the current recession, we see this pattern in the dollar repeated once again.
The more important question however is whether [...]
December 2, 2008
Now that US economy is officially in recession, the big question on everyone’s mind is, how long will it last?
So far, the current recession is the fourth longest in the past 80 years and its on track to be as long as recession in the 1970s and 80s, which lasted for 16 months. However [...]
November 12, 2008
If Martin Feldstein, a member of the National Bureau of Economic Research is right about the unemployment rate surpassing 8 percent, then we could expect consumer spending to slow further, pushing more retail chains into bankruptcy.
The NBER is the organization that officially determines whether the US economy has fallen into a [...]