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85,000 job loss in the first two months confirms US depression – rates headed for zero percent
Nadia Solkar
Mar. 8, 2008
The job losses are slowly accelerating. The underemployment is changing to outright unemployment. The stagflation that was dominating the economy for the last six years is slowly changing to deflation.
The commodity inflation will soon change to an unexpected commodity deflation. It may be the time to short the oil and the gold for the first time in the last six tears.
The Federal Reserve may keep lowering interest rates, and postpone the ``rapid reversal'''' of reductions that officials discussed in January, as the housing rout erodes hiring and spending.
Fed will cut its benchmark rate as low as 1.75 percent by June. The short-term rates are eventually headed for zero percent like that in Japan. The long-term rates will actually push up towards five to six percent.
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