posted on Aug, 20 2009 @ 03:01 PM
I'm giving this thread a bump, because not only is it devastating news to the financial industry at the base of the crisis, but this morning again
there is the news "Recession has hit bottom" in Yahoo news. I've been studying the economy for over 10 years, and believe the news I posted is one
of the most important pieces of news I've read in those 10 years whereas the leading economic indicator news posted by Yahoo is not important.
At least once a week, if not more, each mainstream business news section will display such nonsense about recovery and many economists do believe
No, the recession has not hit bottom. The article points to the leading economic indicators. Once federal government debt increases have stabilized
down from a country-crushing suicidal 2-trillion dollar annual rate to at least a 500 billion annual rate of increase or lower, only then can we
figure out whether the economic depression is still deepening to worse points. The fact that the GDP will likely just barely crank out a positive rate
for the next report with a 2 trillion annual GDP boost from Uncle Sam points to additional economic devastation ahead even after the next bit wave of
bank closures and foreclosures leaving a possibly severe homelessness problem.
Even if unemployment dips back down to 8% things will still be getting worse at that point because its still not enough to stop the next wave of
mortgage foreclosures, the commercial/retail real estate collapse starting just now. Even after the economy starts to pick back up we have to see what
will happen when interest rates start going back up. After dealing with those two collapses finishing up we'll see whether the government will then
go bankrupt after having built up such debt loads and also whether high inflation will take a further toll on the economy.
So, hitting the bottom means we are about about 1/5 of the way through this mess, as employment to take years to recover and we can expect spending
not to recover until at least 2013 or later.
[edit on 20-8-2009 by truthquest]