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Sunday, February 3, 2008

Recession Looms...?



Is US economy on the verge of plunging into recession...? Now many say this question is insignificant as they feel its already inside one. Now even if its not in middle of one its not so far away. The next quarter will see the industrial output and employment rate getting plunged. Already US economy has shredded 17000 jobs in December. Prime Mortgage is asking for its due and eating into the economy. The recession will pull down the entire global economy engine. US Federal bank has lowered the interest rates twice in two weeks which is unusual and may cause long term issues but in short term it might inject the much needed cash into the system. But shouldnt they be containing the inflation, oh then the US public should bite the bitter bullet of unemployment.Moreover, what would you expect an outgoing government do.?

Now what could be the cause of this catastrophe...? Iraq War...? Subprime Mortgage...? Developing markets...? Rising oil prices..? No body can deny that the above said factors could have bought the dooms day sooner. But the real culprit is the interest rate reduction way in early part of this decade to pull out the economy of the then infamous dotcom bust.

Did you ask who can save us from this...? I would say Miracle.

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