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US economy can expand less than 2% in the second half of the year and there is a 60% chance of recession in early 2007
Sam Adelton
Oct. 1, 2006

US economy is experiencing increasingly sluggish growth and employment prospects. According to some economists, US economy can expand less than 2% in the second half of the year and there is a 60% chance of recession in early 2007.

If that happens this can be best time buy bonds and euro dollar futures.

Things will really depend on two things. First, the hosing slump and how severe and long drawn it is and secondly the energy prices.

Bush Administration and the new congress (especially if republican) will tery and provide some tax relief and some money in the hand of the people to spend as boost to the economy. The biggest problem now is that as the real estate valuation goes down and appraisals come lower, people are losing the leverage of taking additional equity out in the form refinancing and spending the money.


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