Massive unemployment in financial services sector throws US into recession – dollars fall and stock market accelerating
Fred Day
Dec. 2, 2007

After the tech market bubble collapse, the Federal Reserve allowed the fastest growth of liquidity in the financial markets and their derivatives to create the biggest bubble. The credit bubble was created. It fueled the real estate to attain prices never imagined before. Well, we saw this to a much lesser extent in Japan before Japanese economy got into deflation and recession with excessive debt.

Same thing has happened in US. The fiscal mismanagement has created the biggest bubble, which has just burst in the face of the pundits who were caught in the wrong foot.

The collapse of the mega bubble has brought the cosmic storm in the financial services industry. Banks have lost count of their reserves because the mortgage derivatives are theoretically worthless. Middle Eastern Government these days are saving the collapse of Citi Group.

The financial meltdown is happening slowly but steadily. Massive unemployment has started to plague the economy with financial service sector taking the lead. Employers in the U.S. hired fewer workers in November and the unemployment rate rose to a 16-month high, reflecting a loss of confidence in the economic expansion, economists said before a report this week.

Companies are curbing expenses as the economy is forecast to nearly stall this quarter under the weight of the worsening housing slump. Federal Reserve Chairman Ben S. Bernanke last week said consumers face “headwinds,'''' and the labor market was “important'''' for sustaining growth.

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Massive unemployment in financial services sector throws US into recession – dollars fall and stock market accelerating
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The collapse of the mega bubble has brought the cosmic storm in the financial services industry. Banks have lost count of their reserves because the mortgage derivatives are theoretically worthless.
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