Stealth deflation has trapped the Federal Reserve into a scenario where no matter what the economy will get depressed and stock market collapse
Peter Oberois
Mar. 18, 2007

The Options on Federal Fund futures at the Chicago Board of Trade show a 43 percent likelihood the central bank will lower its target rate for overnight loans to 4.25 percent from the current 5.25 percent.

But unfortunately it will be too late and too little. The stealth deflation finally expressed its nasty power through the mortgage defaults and residential real estate foreclosures. The debt service default has just started. This is just the tip of the iceberg.

According to some analysts, 40% of the people will default on their loans and mortgages in the next five years. The home prices have already declined 10% from their peak. It is likely to go down by another 60% in the next ten years.

The bubble in housing has collapsed and the stock market is in defensive. The demographics of baby boomers and the trade and budget deficit will make it the nastiest stock market collapse – far nastier than the 1929-33 debacle.

Stealth deflation has trapped the Federal Reserve into a scenario where no matter what the economy will get depressed and stock market collapse
Peter Oberois
According to some analysts, 40% of the people will default on their loans and mortgages in the next five years. The home prices have already declined 10% from their peak. It is likely to go down by another 60% in the next ten years.
READ MORE>>

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