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What happens by end of 2007? Ten-year note yields 4.5%, Dow Jones Industrial Average at 11,000 and Real Estate is down 20%
The economy is in life support system with real estate market collapsing like never before. The mortgage defaults have spread from non-prime to all other sectors. People just cannot pay their mortgage. The real estate market is flooded with properties especially from those investors who learnt from a course how to make it in real estate. Federal Reserve has hurriedly lowered the rate in November and then sharply in December.
Ten-year note yields 4.5%, Dow Jones Industrial Average at 11,000 and Real Estate is down 20%. The unemployment rate has edged higher somewhat. The lack of impact in employment data comes from the fact that people are not looking for jobs any more. They know there are only burger flipping jobs.
People are worried about their retirement funds. Redemptions in mutual funds, ETFs, and hedge funds are rampant. The volatility has increased twenty fold. The stock market is experiencing a 3 or more percentage move every day. The market is slowly declining on a daily basis. Dollar is steady at a low level. The budget deficit is projected to rise sharply due to lack of revenue. The trade deficit is steady at a much worse level. Retail sales have collapsed. Retailers are firing people even before Christmas. Business confidence is low, however, employers are resisting mass lay offs.
The oil price has collapsed to $45 a barrel. The lack of world demand is excess production by Canada and Russia is the root cause.
Well if it does not happen by end of 2007, it is very well a likely scenario by end of 2008.
SMART LIVING & INVST. ARTICLES
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