Tuesday, October 30, 2007

U.S. heading towards recession

As I browse through daily e-mailed updates on the impending perilous economic scenarios in the United States, I feel a chill hovering overhead.

A top-notch analyst in the States forecast that there is now a 50% chance for the world economic giant to go into recession in 2008.

Economic forecast is, at best, a donkey-work. You get bombarded with if you make a slip over a pot-hole.

Back to the burning issue, after the housing market has gone bust, U.S. economy is heading towards a choppy journey.

The domestic consumption constitutes roughly 70% of the States' GDP. It follows naturally that with the housing market dwindling down, the growth would be impacted adversely.

The whole world's eyes are now on the Fed's next move on the interest rate policy. It is a sizzling hot prediction that Ben is likely going to make a golden slash in the upcoming FOMC's meet to haul the economy back to track.

The share markets' frenzied run in the past few days tell it all - the investors worldwide cling high hope on Ben to move in their favour.

Ben is showing to the world that, just like Alan Greenspan, he can also make the markets dance to his tune!

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