Stocks, bonds and the dollar all declining as Fed accepts stagflation for a fact for the first time
Fred Day
Mar. 31, 2007

The Federal Reserve for the first time accepted what the economy faced for the last six years – total stagflation.

Stocks, bonds and the dollar are all-declining as Fed accepts stagflation for a fact for the first time. The stagflation and underemployment started long time back. The recession of 2001 never ran its course. The Fed induced so much liquidity that the recession turned into a nasty scenario of stagflation.

The tax cuts, the low interest rates helped boost the speculative part of the stock market and the commodity markets but failed to induce real growth in the economy.

Now stagflation is slowly changing into deflation in the middle of massive mortgage default crisis. The meltdown is imminent.

Stocks, bonds and the dollar all declining as Fed accepts stagflation for a fact for the first time
Fred Day
Now stagflation is slowly changing into deflation in the middle of massive mortgage default crisis. The meltdown is imminent.
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After six straight quarters of gains, Dow closes with a quarterly loss – the technical signs of at least eighteen months of nasty bear market
Peter Oberois
The reversal after six consecutive quarterly gain is the sign of a bubble bursting. Since second quarter of 2005 Dow Jones Industrial Average went up every quarter – the longest streak in any bull market in the history.
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The stealth deflation does it again – it is fooling the Wall Street and the Fed – increase in consumer spending and riser in income
Sam Adelton
When deflation takes hold the economy, the Dow Jones Industrial Average will plunge and close below 7,000 in the first leg and below 2,000 after the third leg. The first leg has started with an imminent collapse in April.
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Trade tension with China can bring depression to the world economies
Peter Oberois
The U.S. Commerce Department decided to levy new duties on imports from China to compensate for Chinese subsidies to exporters. China seems to get ready for retaliation.
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Bullish optimistic economists running for cover and outright changing prospects of the economy quickly – what is the effect on Wall Street?
Kiran Chaube
They predicted boom. They are on the run to cover their prediction with one eighty degrees turn. Economists are cutting forecasts for first-half growth, prompted in part by a decline in business investment and the housing slump...
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Oil and gold showing signs of commodity inflation – the GDP and employment growth showing signs of stagnation
Media Release
The economy is showing signs of stagflation. While the commodity prices are stubbornly high, the GDP data and employment data manifest weakness and stagnation in the economy.
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As Dow Jones Industrial Average closes below 10,000 after April crash, internal probe of corporate accounting practices will haunt Wall Street – Dell the first casualty
Peter oberois
The effect on Wall Street will be severe. This is just the tip of the iceberg. Do not get surprised to see many companies announce what Dell did today.
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Iran factor can take oil to $100 and then $40 but Dow is on course to 10,000
Sam Adelton
A geopolitical showdown is imminent in Persian Gulf. The oil market is reaching a temporary high on war premium. If the sailors are returned to the UK officials, oil will fall to below $30 a barrel.
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