posted on Mar, 9 2007 @ 11:35 PM
Ultimately, I'm anticipating further weakness, especially if shock waves like those from the sub-prime mortgage bomb, begin to rumble out of the
prime lending market. I'm referring to the speculators with decent credit that jumped on the bubble bandwagon, and now find themselves over-extended,
and making payments they can't afford...on vacant properties they can't flip.
Inspite of the rhetoric coming out of Washington and the Fed, I feel that we remain vulnerable to recession. Considering the housing situation, the
flagging manufacturing sector, and the apparent peak in corporate profits, a softening by the Fed soon, wouldn't surprise me.
For the near term, it looks like nervous investors have turned to treasuries.
Another looming issue for the American economy, is the rapid decline in oil deliveries from the number 3 importer to the US...Mexico. The effects of
dwindling producton at the Cantrell field, Mexico's largest, will eventually reach the pump.
Personally, I'm bullish precious metals, base metals, uranium & oil.