Federal Reserve determined to keep rates on hold – a catastrophic move that can cause deep recession or depression and take Dow below 7,000 by end of 2009
Marla Gurthrie
Mar. 26, 2007

Federal Reserve statement last week was confusing. The central Bank meant they see higher risk of a recession but nevertheless they want to keep rates where they are for a long time. The risks include the surprisingly weak level of business investment and lower consumer confidence.

While the risk is obvious with real estate collapse and mortgage defaults, Fed is convinced that rates should stay where it is.

Fed decision to stay put is actually catastrophic. In 2009 we will look back and understand what big a mistake the Fed made. It will be too late then. Fed is not seeing the real problem – the stealth deflation that is taking control of the whole economy.

Federal Reserve determined to keep rates on hold – a catastrophic move that can cause deep recession or depression and take Dow below 7,000 by end of 2009
Marla Gurthrie
In 2009 we will look back and understand what big a mistake the Fed made. It will be too late then. Fed is not seeing the real problem – the stealth deflation that is taking control of the whole economy.
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Time to invest in real estate or stay away from it?
Karen Zuba
The new home sales figure shows deepening crisis with largest number of unsold homes in the last sixteen years and rapidly falling prices with lower confidence in the real estate market.
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Oil nears high as gasoline stockpile report will show adequate supply due to cooling economy
Sonia Abazedi
Tomorrow the gasoline stockpile report will show adequate supply due to cooling economy. It will drag gasoline and crude process down. The diplomats are eager to work a deal to free the British soldiers held by Iran.
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Asian Development Bank acknowledges slowing world economy but fails to recognize deflation that is creating the scenario for worldwide depression
Peter Oberois
The slowdown will accelerate. The ADB fails again to understand the same. Last time they said the growth will be rapid and at record levels. Now they have started revising it downwards. The worldwide depression is imminent.
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Collapse in new home sales manifests deflation and economic depression in 2007-2012 – Dow can fall below 1700
Sam Adelton
Finally the Fed and the Wall Street’s billion Dollar Gurus are coming to understand what we have been saying in India Daily for long time. The world economies are headed for a deflation driven depression.
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UK home price increase hits record – US market can follow the trend setter in Europe
Karen Gonzales
The US housing market can potentially follow the UK market. The lumber futures contracts held by the commercials point to a building pressure on the demand for lumber.
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The data this week will point to a recovering economy – are you long dollar yet?
Paula Zuba
Are you long the dollar index? The smart money is planning to go long on dollar early morning on Tuesday with collapse in consumer confidence.
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Consumer confidence crashing as home prices continue to fall and people start losing their underemployed jobs - Confidence-Conf. Board data will confirm
Peter Oberois
As people struggle to come up with cash to debt service the second mortgage and home equity line of credit, as home prices continue to decline 2% a month, as unsold homes still keep rising, the consumer confidence is falling.
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