The Economy–Down Dow! Down!: “Evans-Pritchard: Dow 4,000 by Summer” is the article title of Money news (moneynews.newsmax.com/street talk) 3/06/09 post by Gene J. Koprowski.
In this post, Daily Telegraph International Business Editor Ambrose Evans-Pritchard is
reported as saying that “Global trade and economic output are collapsing at rates that outpace the Depression of the 1930’s, and “shock and awe” policies are required from the U.S. government to revive global growth.”
Mr. Evans-Pritchard continues “The terrifying fall has been concentrated in the last five months. The job slaughter has barely begun,” and “Social mayhem comes with a 12 month lag.”
Looking at interest rates, Evans-Pritchard points out that they are the lowest in history and still they fail to gain traction globally. He goes on to suggest that they be lowered more; in the areas of 10-year Treasury bills to 1 percent and in the case of mortgage interest rates to 2.5 percent (or the Dow could fall to 4,000 by summer). He acknowledges that “This remedy is fraught with risk, but all options are ghastly at this point.”
Mr. Evans-Pritchard concludes that “We are at the moment of extreme danger.”
Note: As we’ve said before here at Prudent Home, while other economic observers have been more optimistic regarding economic conditions and recovery times: they’ve been wrong. It is Roubini, Evans Pritchard, Weiss, Meredith Whitney and their like who have proved qualitatively correct on the whole and if they’ve fallen short anywhere, it’s in underestimating the severity of the situation.
Food–Stamps (Not Postage!): “Food stamp enrollment jumps to record 31.8 million” is the informative headline of the article reported by Charles Abbott for Reuter’s (reuters.com) on 3/05/09.
“A record 31.8 million Americans received food stamps at the latest count (there’s about 305 million Americans in the USA so that number is well in excess of 10%), an increase of 700,000 people in one month with the United States in recession, government figures showed on Thursday.”
This Week: Prudent Home plans to offer some very important/timely information on water next week along with some helpful “coping” sources for the family food situation.
Until next time, keep your eyes on the horizon as the weather’s changing fast.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.