The similarity between year 2000 and 2007 suggests that 2008 may be similar to 2001 for the stock market
Karen Zuba
Dec. 30, 2007

The year 2000 was the start of the last recession. The stock market in 2007 looks similar to that of year 2001. U.S. stocks fell and were poised for their first fourth-quarter decline since 2000 after government reports on durable goods and unemployment reinforced speculation the housing-market collapse will push the economy into recession.

The year 2008 may similarly resemble 2001 and officially mark the start of a multi decade recession and/or depression. The Standard & Poor's 500 Index has declined 3.2 percent since the end of September, paring its 2007 advance to 4.2 percent. The momentum studies show that the global equities markets are slowing down. The stagflation effect in the world economies is clear.

| The S&P 500 dropped 0.4 percent to 1,478.49 this week. The Dow Jones Industrial Average slipped 0.6 percent to 13,365.87. The Nasdaq Composite Index lost 0.7 percent to 2,674.46.

After subprime and residential real estate massacre, the next blow on the economy comes from sharply contracting retail sector – Macy’s closes nine stores
Joe Weinman
The final blow on the economy now comes from the retail sector. The $3 gas price and above 10% drop in housing prices is extending the effects into the economy.
READ MORE>>

The similarity between year 2000 and 2007 suggests that 2008 may be similar to 2001 for the stock market
Karen Zuba
The year 2008 may resemble 2001 and officially mark the start of a multi decade recession and/or depression. The Standard & Poor's 500 Index has declined 3.2 percent since the end of September, paring its 2007 advance to 4.2 percent.
READ MORE>>

Institute for Supply Management's factory index falls in December to lowest ion 11 months – catalysts for a rally in bonds and sell off in Dollar and Stocks
Peter Oberois
Some financial think-tanks believe that the bonds will not rally because of the ‘stagflation’ effect. The recession with increasing inflation can be beneficial or gold. It is bearish for stocks and slightly bearish for bonds.
READ MORE>>

Rising unemployment in December confirms deep recession
Marla Guthrie
The unemployment rate notched up 0.1 to 4.8. The rising unemployment rate from 4.4 to 4.8 in any business cycle sends a serious warning signal.
READ MORE>>

U.S. Holiday Internet Sales Rise point to a deep recession in 2008
Sam Adelton
Online spending from Nov. 1 through Dec. 27 increased 19 percent compared to 26% a year earlier, Reston, Virginia-based ComScore Inc. said.
READ MORE>>

World watches Pakistan’s biggest mockery in the name of election – Musharraf’s men already rejoicing the landslide win in rigged election
Sujjat Hussain
Musharraf’s people are confident that the General will deliver a landslide while Sharif and Bhutto fight it out. Sources in Pakistan say Musharraf allowed these two to legitimize the election.
READ MORE>>

Fed plans to flood the economy again with liquidity to avoid recession – what about inflation?
Fred Day
It is analogous to treating a cancer patient with painkillers. More liquidity will help for six months but then pain in the economy will be much severe than now.
READ MORE>>

MORE ARTICLES >>