We'll see.
Hein-Verbruggen said:Not so Cranky. Forest fires cause property damage. Evacuate or you may suffer a harsh BBQ. Heavy rains may cause floods too. Get a raft.
Ignorance and denial are unhelpful (as in doping crimes too), action and awareness may save lives.
The credit markets are in paralysis mode. Until ECB and US fed offer up more steroids, IV feeds, free money gifts and lower interest rates--real estate values will continue to tank, sales will decline to zilch, unemployment will grow, and stagnation & recession would then follow. (already happening)
Ignore the past 30-day T-Bill yield spread EKG at your own peril.
Today's news (lagging indicator) is that 1% of all USA mortgages are now in forclosure---a new historical record.
In addition, 5% of all US mortgages are presently delinquent (pmts past due), also a new hostrical record. These are NOT BULLISH economic indictors.
T-Bill yields are in a wild EKG fluctuation, revealing a gravely ill patient.
Often times---the obvious clues are a warning. recession is near the longer the central bankers dilly dally with the inescapable rate reductions. They WILL lower rates, but sooner is better than later.
ECB will LOWER rates too. All the world benefits from the mighty USA consumption, credit driven machine, blood-for-oil, and financial hedge fund black boxes of private equity capital. All world economies shadow the USA, Asia included.
Petro dollars = solient green