The stealth deflation has fooled everyone including Fed – the April crash in stock market will only open eyes of Wall Street Gurus
Sam Adelton
Mar. 29, 2007

Bernanke told Congress yesterday that risks to economic growth have increased but Fed is still concerned about inflation. Fed’s confession finally that it overlooked the possible scenario of stagflation is interesting. But believe it or not, they are lagging behind the reality by two years. Two years beak I pointed out in India Daily that economy is doomed with stagflation. Commodity inflation and stagnation were the root cause of troubles. But unfortunately, Fed did not get it. The Wall Street did not get it.

They fought stagflation with easy credit. People borrowed and borrowed without thinking how they are going to service the huge debt. Now the stagflation has changed to outright deflation.

They still do not get it. They are concerned about stagflation now after two years of the fact. Two years later when the economy will be depressed and Dow Jones Industrial Average will close below 7,000, they will cry deflation.

The stock market has entered a nasty state of rapid acceleration on the downside. This will end after a massive crash in April. Historically April is the worst month for the stock market – worse than October!

The stealth deflation has fooled everyone including Fed – the April crash in stock market will only open eyes of Wall Street Gurus
Sam Adelton
The stock market has entered a nasty state of rapid acceleration on the downside. This will end after a massive crash in April. Historically April is the worst month for the stock market – worse than October!
READ MORE>>

The stock markets across the globe have started a very nasty down leg that can end up in serious meltdown and crash
Peter Oberois
Lower consumer confidence, lower business spending, mortgage defaults, collapsing home prices, bankruptcy among banks, lack of solvency of FDIC, huge budget and trade deficit, Social Security and Medicare fund problems – all are reasons for worry.
READ MORE>>

A spike in crude can cause the April crash of sock markets across the globe – higher commodity inflation and stagnation as well as deflation in most sectors
Fred Day
A limited military confrontation with Iran can create a spike in oil market to $100 a barrel. That in turn can cause the April 2007 crash in the stock markets across the globe.
READ MORE>>

A massive rise in durable goods order may boost dollar and stock market but economy suffers from lower consumer and business confidence
Karen Zuba
The rise is cyclical and will be short-term boost for the stock market and perhaps a relief for dollar index. But the economy is suffering from long-term problems.
READ MORE>>

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.
READ MORE>>

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.
READ MORE>>

MORE ARTICLES >>