US Economy shows signs of hope but under the rug there are signs of coming deep depression that can take Dow below 2000 mark
Marla Guthrie
Sep. 30, 2009

The world’s largest economy shrank at a 0.7 percent annual rate from April through June. Government stimulus plans such as “cash for clunkers” and first-time homebuyer credits of $8,000 are giving manufacturing and housing, the two areas at the center of the economic slump, a boost this quarter.

But behind the scene the Federal Reserve officials are really worried. are among those concerned that gains in consumer spending will not be sustained as unemployment climbs and incomes stagnate. The economy will recover in the second half of the 2009. But then, in 2010, the real depression will start. At that time seven time more stimulus money will be needed to float the economy.

Companies cut an estimated 254,000 jobs this month, more than forecast, a private report based on payroll data showed today. The drop, which was the smallest since July 2008, compares with a revised 277,000 decline the prior month, figures from ADP Employer Services showed.

The job picture is gloomy. The underemployment is rising fast. People are forced to accept jobs they can find to pay their bills. But in the long term that equates to a long-term deep depression that cut US economy to half its current size.

US Economy shows signs of hope but under the rug there are signs of coming deep depression that can take Dow below 2000 mark
Marla Guthrie
The job picture is gloomy. The underemployment is rising fast. People are forced to accept jobs they can find to pay their bills. But in the long term that equates to a long-term deep depression that cut US economy to half its current size.
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