Dow Jones Industrail Average headed for 11,000 by end of 2007 – what the impact on the job market and economy?
Peter Oberois
Nov. 10, 2007

In fianncial markets, the stock market predicts the future of the economy six months before it starts faltering. The market bottoms when the economy hits the bottom in the recession cycle. The technical and sentiment indicators show lack of fear in the market place. Bottom picking already is on as the fundamentals get worse. Normally the maket is less than thirty percent down from its taget low when this kind of sentiment continues.

Analytic models are saying that by end of the year Dow Jones Industrial Average will fall below 11,000. It will a broadbased decline led by the tech and financial sectors.

The question is what is the impact on the job market and the overall economy. While business confidence is stagnant, the consumer confidence is falling very rapidly as oil prices approach $100 a barrel and resiodential real estate prices plunge 4% or more from the last year’s highs.

UBS is capping 2007 cash pay for bankers and traders at $750,000, with a bigger portion of total compensation coming from stock. It is the first visible sign of weakness in the high flying financial job markets. The loss of jobs in the financial services sector will be staggering next year. The overall impact on the economy will be slow bit steady deterioration.

Dow Jones Industrail Average headed for 11,000 by end of 2007 – what the impact on the job market and economy?
Peter Oberois
UBS is capping 2007 cash pay for bankers and traders at $750,000, with a bigger portion of total compensation coming from stock. It is the first visible sign of weakness in the high flying financial job markets.
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As mortgage meltdown moves from subprime sector to prime, Bernanke sets out jumbo mortgage plan – can it help in stopping the slow but steady financial meltdown?
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Mr Bernanke told Congress he would support raising the limit on the size of the individual loans eligible for government-sponsored mortgage finance from $417,000 to $1m on a temporary basis.
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Tech stock’s decline of 7% in the past three days -- led by Google and Apple may signal US economy headed for a deep recession – what the impact on world economy?
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The mortgage meltdown, real estate bubble busrts, $100 oil price and slide of US Dollar has created for the first time a scenario of total financial meltdown and evetual world depression.
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. While the real biggies may take time to capitulate, Wachovia and Etrade are in real troubles in spite of casual behavior from these financial institutions.
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Things are becoming more transparent. The mortgage bubble and the scam is just beyond anything we have ever seen. Chuck Prince is planning to step down as chairman and chief executive of the banking giant.
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