News this week shows economy is headed for a deep recession slowly but steadily – time to buy bonds an sell stocks
Sam Adelton
May 7, 2007

Sales at U.S. retailers increased in April at the slowest pace in three months as rising gasoline prices strapped consumers. The business confidence is hitting new lows. There's no significant increase in retail sales because of higher energy prices. Price pressures are enough to keep the Fed on the defensive.

The jobless claims number that will be announced on Thursday will show significant rise in claims. Producer Price Index will register a slower than last month’s rise. Retail Sales, Retail Sales without autos, Retail Sales without autos and gas will all register a slower increase.

Simply put the data will show the economy is slowly and steadily receding into a recession in a parabolic path. Parabolic decent is always dreaded because they are very long term.

The biggest problem is in Auto, housing and manufacturing sectors. The biggest surprise will come from the financial services, stock market, investment bankers and stock markets all around the world.

It look what happened in Japan in late eighties is going to repeat for the whole world this time. When Nikkei was in upper 40,000s and was rising every day, no one could believe Nikkei will fall below 10,000, Japanese economy will hit by deflation and after twenty years, Nikkei is still below 18,000.

The news this week shows economy is headed for a deep recession slowly but steadily. It is time to buy bonds an sell stocks.

News this week shows economy is headed for a deep recession slowly but steadily – time to buy bonds an sell stocks
Sam Adelton
When Nikkei was in upper 40,000s and was rising every day, no one could believe Nikkei will fall below 10,000, Japanese economy will hit by deflation and after twenty years, Nikkei is still below 18,000.
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The collapsing mortgage market loss can total more than a trillion dollar by the end of the year =-what’s the impact on stocks, bonds and currencies?
Fred Day
The mortgage bankers scared like never before. The real estate collapse has just started. The artificial liquidity was unable to hold the real estate market any further.
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News on corporate take over deals reaching options floor a few days before actual signing of the deal and breaking news - worst insider scandals in the history of the stock market?
Alan Hershey
It is the responsibility for the stock exchanges and options exchanges to control and notify the SEC of such happening. They did not. Some are saying the stock exchanges themselves are involved in the scam.
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Weaker corporate bond prices suggest the debt market is growing concerned about corporate earnings in the second half of the year
Peter Oberois
It is commonly known as divergence in the market. Divergences eventually get corrected through nasty and lengthy bear markets or sharp drop in market prices.
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French unrest with conservative leadership may be a reason for selling Euros
Karen Zuba
The turmoil will spread into other parts of the Euro zone damaging the economics of the region. It is time for selling the Euro.
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The lack of job growth spreads beyond homebuilders – deflation in full control as mortgage defaults skyrocket
Peter Oberois
The artificial liquidity created in the last six years has hidden the stealth deflation within the economy. The employment data finally confirms that the stagflation that started in 1981 has now slowly turned into a deflation.
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