Global Investing

Forecaster sees more Fed cuts, higher U.S. unemployment

September 30, 2008

Macroeconomic Advisers tells clients this morning they expect “weaker growth in Q3, a deeper decline in Q4 than we previously expected, and a weak rebound in Q1 of next year will now qualify this period formally as a recession.”

U.S. unemployment rate “could well reach 7%,” the forecasting firm says, as it projects a 50 to 75 basis point easing by the Federal Reserve to address the weakening data as well as financial conditions.

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One that that seems to have gone unnoticed is that this week our national debt will pass 10 Trillion dollars! As reviewed here: http://www.savingtoinvest.com/2008/10/an nouncing-americas-ten-trillion-dollar.ht ml , the bailout is insignifcant be comparison and this is going to be a much more serious issue in the longer term.

 

I believe that higher unemployment is on the way… not just for the US but nearly all the developed and developing countries who has been infected by the US Banking Virus!

The world has been made smaller by the internet and the abuse and ignorance of the loopholes and problems in the banking system has caused great losses worldwide.

Governments around the world are throwing in good money after bad money… but is this right! i feel that there are two ways to it!
It is good in the short term … ie to rescue heavily burdened financial companies who do not really deserves to be safed. The bad sight which most do not seem to understand is that if we only do the saving of the bad money and not reversed it to good! The bad will continue to last forever and the good will continue to be infected and the cancer is worsen! My solution is TO ABOLISH THE BAD PART OF THE US BANKING SYSTEM TOTALLY! Only than can the money become good in the long term…

It is said that we cannot mix old wine with new wine… but for the good wine maker… this is possible and the result can become astoundingly good!

However, if we put the winemakers in the global economy and call wine the economy! But there are too many wine makers or important finance ministers in the world to turn mix both wine together and turn them good! The job is tough for all as there are too many concern and worries!

Good luck!

Posted by Michael Low | Report as abusive
 

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