Fema Employment
Is the U.S. tumbling into recession?
The theory goes that 1st week of trading for the year is an indicator of what to expect for the rest of the year. If so, the outlook is not particularly positive for investors. US trading week of 2008 has had a distinctly downward flavour, with the DOW shedding 4%. At the Housing Economic Forum, Bernanke said that the US Federal Reserve was ready to take “substantive action” & that more rate cuts “may well be necessary”. Non-Farm Payroll numbers showed a paltry rise of 18,000 jobs. Market expectations were for 50,000 new employees to be added to payrolls. The low number fueled concerns of recession in USA. Countrywide Financial was one of the most volatile stocks of the week. Rumors regarding bankruptcy triggered a substantial price fall. Then, on Thursday, reports that Bank of America was in talks with the troubled lender sent Countrywide shares soaring.
Public Comments
- All signs are pointing toward a big yes.
- Either a official recession with negative growth or the economy slowing to near zero growth that will feel like a recession is almost a certainty. Most economist believe it is already happening and will show in the 4th quarter GDP numbers when they are released.
