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The sharp drop in leading indicator shakes the Federal Reserve – together with Housing slump interest cut is in the horizon
Paula Ranske
Jul. 19, 2007
Once the rate cut starts, it will be sharp and fast just like that in 2001. The stagnating economy is tilting towards the recession. The sharp drop in leading indicator shakes the Federal Reserve.
The retail sales are weak. Merchandises are moving only if the discount is heavy. People are reluctant to borrow any further. The housing slump makes it impossible to tap the home any further like the piggy bank.
The budget deficit has shrunk somewhat because of massive capital gains tax inflow. But once the real estate and stock market goes further south, that aspect will also weaken. The consumer sentiment is weak. The auto sector is really weak. The manufacturing is topping out. The service side of the economy is looking tired.
The stock market bubble is ready to burst. Just like real estate the stock market will enter a perpetual bear market machine that will extend its realm over many decades.
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