Process of Economic Meltdown toward recession Explained – Ship rocks

Too late.  There’s no way off the ship 

Seldom does the story live up to the hype of a good headline but I have been a headline reader for most of my life. 

This article, “America’s economy risks the mother of all meltdownsFT.com,

By Martin Wolf,  Dated Tue Feb 19, 1:25 PM ET, and found on Yahoo business news, really has a great story to tell.  Martin sums it up beautifully when he says;

But his thinking deserves to be taken seriously. He first predicted a US recession in July 2006*. At that time, his view was extremely controversial. It is so no longer. Now he states that there is “a rising probability of a ‘catastrophic’ financial and economic outcome”**.  (Martin Wolf speaking of Nouriel Roubini of New York University‘s Stern School of Business, founder of RGE monitor.)

Read that article and then peruse Yesterday’s headlines in Yahoo’s business section that went like this;

Fed lowers economic forecast

Consumer prices post another big gain

Oil pushes past $101 on Fed view

GMAC to cut about 930 auto finance jobs

Banks bear brunt of FTSE losses

A&L to rein back mortgage lending

Those are 6 out of 10 pulled from the Daily News Digest: Business news from Yahoo News.  The 4 positive headlines didn’t do too much to alleviate my fears of a recession in the face of these staring them down.  

I have heard “experts” suggest $100+ oil with that price lasting a long time.  I’ve seen gold, a typical inflation hedge hover just below the $1000.00 mark and “experts” suggesting $2000.00+ price in the 1 to 3 year range.  I noticed that the momentum of stock prices for, supposively, recession-resistant or recession-proof stocks slowing down and build-ups of inventory in the ones that haven’t yet.  It’s been warned in headlines that tech buying is soon to slow down and to top all that off, the headlines are coming out about the state of the retail sector and it doesn’t look pretty either.

It may be irresponsible to say these things if I was a major news, financial, or political figure but I am not.  You can do what you want with this information but I am still going to be wearing my life-vest just like I said I would on February 7th in Recession headline: Bears like sinking ships.

So when you read a headline, whether it is positive or negative, just remember; our economic ship is still heading towards a reef and the captain or captains are still screaming:

“SCOTTY, I NEED MORE POWER UP HERE! I NEED MORE POWER, NOW!

Patrick

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