Looming Economic Recession ???

Discussion in 'Off Topic' started by seeker6591, Jun 6, 2006.

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  1. seeker6591

    seeker6591 banned

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    Im not worried about the Dow...Im concerned about the the economy falling apart !!!


    Just as a side note note.......the Dow has been a good predictor in the past of future recessions. Cumulative drops of 15-20 percent are usually an accurate sign.


    I'm much more concerned about an economic slowdown and if a recession develops from all of this.


    Rising gold prices and rising INTEREST RATES are problematic.
    Last edited: Jun 6, 2006
  2. Daddycool

    Daddycool

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    3,952
    The dow lost 400 points in two days. I think looking at the dow and how it is doing is overrated anyway.
  3. seeker6591

    seeker6591 banned

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    The question here is........how fast is the US economy slowing down and will it lead to a full blown recession ????


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    Inflation fears sent stocks plunging as jitters over high oil prices exacerbated signals that the Federal Reserve will keep lifting interest rates to contain price increases.

    Fed Chairman Bernanke told an international monetary conference that while rising energy costs have helped slow the pace of economic growth, core inflation _ excluding energy and food _ was near the central bank's tolerance level and could warrant further rate tightening.

    The news stunned investors who had grown hopeful that the Fed was almost done raising rates after recent data showed signs that the economy was beginning to cool off. But with Bernanke saying inflation still posed a problem, traders worried about higher interest rates in a slowing economy limiting the potential for stocks to make long-term gains..

    Bonds slipped after Bernanke's speech increased the likelihood that the Fed will boost interest rates again at its June 28-29 meeting. The yield on the 10-year Treasury note rose to 5.02 percent from 5 percent late Friday.

    In economic news, the Institute for Supply Management said its services index for May dropped 2.9 points to 60.1, nearly in line with estimates for a reading of 60. However, the prices paid component surged 7 points to 77.5, stirring fears about inflation.

    Although economists had predicted a dip in the ISM index, the slower growth added to concerns about whether the economy was slowing too quickly. On Friday, a sharply larger-than-forecast slide in monthly job growth deepened those fears.

    But even as the economy shows signs of tapering, persistently high oil and gasoline prices are expected to put more strain on consumers as lending rates rise and home values stabilize _ the combination of which is feared to trigger a downturn. Bernanke confirmed those concerns, saying economic growth is moderating but that inflation is still a threat.
    Last edited: Jun 6, 2006