On Labor's blackest economic day since it came to power, Gordon Brown sought to end the run on Northern Rock by pledging to prop up the beleaguered bank.
A severe financial hurricane just touched down in England and will soon pick up speed over the Atlantic before it spreads its deadly destruction over America ~ in the form of a Recession. Mike Whitney calls it a Force 5 economic-hurricane that is headed for America and gaining strength on the way.
http://www.informationclearinghouse.info/article18410.htm
And here's what we are looking at ~ as I and others have predicted for some time ~ the handwriting is on the wall and it spells RECESSION. The parting gift from the most inept, corrupt and incompetent administration in American history ~ The Cheney/Bush administration. And despite his attempt to run for cover ~ Alan Greenspan's support for Bush's ill advised tax cuts in 2001 and 2004 will seal his own cowardly place in history as having justified this march toward financial madness.
Money and Markets predicts that Bernanke's no-win interest rate cuts will cause the dollar to collapse, foreign support for the dollar will evaporate and increased liquidity will eventually cause prices and inflation to dramatically increase. Here are their six signs of a coming recession and they have been right for well over two years.
Six Signs of a Coming
Recession in the U.S.
#1. Our economy lost 4,000 jobs in the month of August and the share of the working-age population that reports holding a job — has fallen to its lowest level in nearly two years.
#2. Oil hit $80 a barrel for the first time ever last week. Other commodities, such as wheat, also hit all-time highs and are up 89% in the last five months.
#3. Gold also crept up to $709.60 a troy ounce despite last week's stock market rally; the metal has rallied for four straight weeks and is approaching its all-time high!
#4. The Commerce Department reported that retail sales rose by an unimpressive 0.3% in August. What's more, if you back out autos, retail sales would have actually dropped by 0.4%.
 |
| Economists see a 1-in-3 chance of a U.S. recession. Others are less optimistic … |
#5. The National Association of Realtors reported that pending home sales plunged 12.2% between June and July. That's the worst one-month fall on record! Some 5.12% of the country's mortgages are also now delinquent, meaning the borrower is at least 30 days behind on payments. That's the highest in five years.
#6. The U.S. dollar is in a free fall. The euro just touched a new record high against the greenback, and Canada's currency is trading at its highest level relative to the dollar in 30 years.
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And it's a world wide hurricane ~ Credit fears flared in Asia on Tuesday prompting Australia's central bank to quash speculation that one or more regional banks had asked for emergency funding, a day after savers rushed to withdraw deposits from a British lender
http://snipurl.com/1qvt7
Even U.S.Treasury Secretary Henry Paulson, who has been vainly trying to prop up this rapidly deteriorating financial deck of cards, said " Investors should brace themselves for a prolonged period of market turmoil " as he held emergency meetings with the Chancellor and the French Finance Minister.
http://snipurl.com/1qvt4
And finally, yesterday's stock market rally on the Fed's cut is a suckers rally and resist the urge to climb on board. It will be short lived and the eventual sell off will be devastating for many ~ particularly the unsophisticated investor.
Allen L Roland
Freelance columnist Allen L Roland is available for comments , interviews and speaking engagements ( allen@allenroland.com )
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www.allenroland.com
Allen L Roland is a practicing psychotherapist, author and lecturer who also shares a daily political and social commentary on his weblog and website allenroland.com He also guest hosts a monthly national radio show TRUTHTALK on Conscious talk radio www.conscioustalk.net
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