Gold breaches $900 while job cuts accelerates and economy slides into deep recession – what does that mean?
Karen Zuba
Jan. 15, 2008

Gold breached $900 an ounce. At the same the housing depression went deep and spread into other parts of the economy. The employment picture is bleak as major banks and financial institutions fight for survival and plan to cut millions of jobs in 2008-2009.

Many are wondering what does that mean? It means Government and Fed are planning to print currency irresponsible way to aid the economy. They are planning to flood the markets with liquidity. The budget deficit will skyrocket, interest rates will be lowered and more tax incentives will give some kick to the economy for a head start.

The lumber futures say something interesting. The Government infused liquidity will create a second run on the housing bubble. It seems the Government will provide massive incentives to buy homes at the cost of the tax payers and budget deficit.

The dollar will fall further. The gold can rise some more although it is overbought by any standard. The bubble in stock market and the real estate market will go for their second runs. The real estate will bounce just like any bear market rally. The bubble may run its course and finally burst in 2009.

Gold breaches $900 while job cuts accelerates and economy slides into deep recession – what does that mean?
Karen Zuba
They are planning to flood the markets with liquidity. The budget deficit will skyrocket, interest rates will be lowered and more tax incentives will give some kick to the economy for a head start.
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China and India starts slowing down, US and Japan heads depression – world economies in deep trouble
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Sony Corp., which counts America as its largest market is in trouble and is ready to provide lower guidance. So is Toyota and Honda.
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Massive jobs cuts in the pipeline – banks, Wall Street, Telcos, healthcare, industrials – all plan to cut millions of jobs in 2008-2009
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The biggest job cuts come from the banks and financial institutions who are lining up in a queue to go bankrupt one after the other. The next is healthcare.
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The Fed Chairman who brought housing depression now joins a hedge fund firm who continues to gain from the fall of housing bubble
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People in main street question why is Mr. Greenspan allowed to be an economic and financial advisor after drowning the economy with his conservative supply-side economics?
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Since the Great Depression for the first time States are ready to go bankrupt and delinquent
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As they cut expenses and raise taxes directly and indirectly, the revenue will shrink much faster than these governors can ever imagine. The resulting effect is a financial nightmare where States go bankrupt and delinquent.
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Citigroup problems mirror other large banks – deep dividend cuts, loss of hundreds of thousands of jobs, declining reserves and sharply falling investor confidence
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The real sad side of this is the skyrocketing foreclosures and hundreds of thousands of jobs cuts that will engulf the economy. These are highest paying jobs that will be lost in the next two to three months.
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