Predictions: American economy will get worse
By Major Yield
2008 will be a year to remember for many reasons. My faith in the private sector will be tested. Will Americans act like Americans have in the past? And will God continue to bless America?
Here are some one-liners on the American economy:
The Market:
No matter what market: Most trends are set in a direction at present.
Let the trend be your friend, but expect “speed bumps” to cause a lot of volatility along the way. The day-traders dream and the investor’s dilemma.
The Economy:
Contagion will continue into many places not expected .to be found. The inter-connection within the economy which has been brought about by the “Globalization” of industries is causing new relationships of contagion and risk.
The Stocks:
Will get worse in many industries.
Debt:
Steeper Yield Curve – Non investment grade products in real trouble.
Mortgage:
Slow government response to problems; credit tighter, higher cost, more inventory and lower sales.
Commodities:
Supply and demand driven. Gold and other precious metals higher cost.
Derivatives:
Forget about it!
Housing:
No recovery this year.
Oil and Gasoline:
Higher as OPEC and others try to pay their bills. $4.00 a gallon gasoline.
Employment:
If the troops come home all at once: un-employment rises. If funds are cut off for war effort; employment takes another hit.
Interest rates:
Short-term lower. Long term higher. Real cost of borrowing for all will be much higher; credit requirements much tighter.
The Dollar:
Weaker but other government currencies will not like it and may respond to support it.
Taxes:
Will go up at every level of government.
Inflation:
Will continue to rise all year.
Politics:
All will continue to tell you what you want to hear – until elected.
Presidential Race:
Choice between a very liberal Democrat and A very liberal “sometimes” Democrat.
Courtesy: www.bondheads.com
By Major Yield
2008 will be a year to remember for many reasons. My faith in the private sector will be tested. Will Americans act like Americans have in the past? And will God continue to bless America?
Here are some one-liners on the American economy:
The Market:
No matter what market: Most trends are set in a direction at present.
Let the trend be your friend, but expect “speed bumps” to cause a lot of volatility along the way. The day-traders dream and the investor’s dilemma.
The Economy:
Contagion will continue into many places not expected .to be found. The inter-connection within the economy which has been brought about by the “Globalization” of industries is causing new relationships of contagion and risk.
The Stocks:
Will get worse in many industries.
Debt:
Steeper Yield Curve – Non investment grade products in real trouble.
Mortgage:
Slow government response to problems; credit tighter, higher cost, more inventory and lower sales.
Commodities:
Supply and demand driven. Gold and other precious metals higher cost.
Derivatives:
Forget about it!
Housing:
No recovery this year.
Oil and Gasoline:
Higher as OPEC and others try to pay their bills. $4.00 a gallon gasoline.
Employment:
If the troops come home all at once: un-employment rises. If funds are cut off for war effort; employment takes another hit.
Interest rates:
Short-term lower. Long term higher. Real cost of borrowing for all will be much higher; credit requirements much tighter.
The Dollar:
Weaker but other government currencies will not like it and may respond to support it.
Taxes:
Will go up at every level of government.
Inflation:
Will continue to rise all year.
Politics:
All will continue to tell you what you want to hear – until elected.
Presidential Race:
Choice between a very liberal Democrat and A very liberal “sometimes” Democrat.
Courtesy: www.bondheads.com