Posted on 08/04/2011 8:28:13 AM PDT by SeekAndFind
You know it’s going to be a wild day in the market when investors look to Silvio Berlusconi for a pep talk.
The Italian prime minister, speaking to his country’s Parliament Wednesday night in Rome, did his best to talk up the markets with pledges of cost cuts, yet he could not change the fact that Italy has become the new Greece. With all that entails.
If it’s August it must be time for another chapter of the European crisis. But markets around the world, including in the U.S. these last two weeks, are forecasting something more sinister. The eight-day decline in the Dow Jones Industrial Average snapped Wednesday with a paltry almost 30-point gain — shows that investors are discounting a new recession next year.
The latest batch of economic reports are almost too weak to digest, though that didn’t stop MarketWatch’s Washington bureau chief from compiling them into a terrifying summer reading assignment on Wednesday. See chronicle of gloom.
If the payrolls and unemployment numbers on Friday are anywhere near as bad as they are expected to be, then stocks could get even worse next week. Economists predict July’s nonfarm payrolls grew by a meager 75,000, and that the unemployment rate stood pat at 9.2%.
Anything weaker than 75,000, or a worst-case scenario of a negative number, could spur a stampede out of equities.
Some pundits claim the market is poised to bounce in coming days as the length of the latest decline has made it oversold. That’s probably right. A downgrade of the U.S. debt rating by Standard & Poor’s, removing that uncertainty, could be the catalyst, as I’ve said before. And it’s still entirely possible that stocks will come out of this summer with big gains heading into the end of the year.
(Excerpt) Read more at marketwatch.com ...
New recession?
Same recession.
Recession Almost A Certainty, Says Advisor — Stocks Could Crash Soon by Henry Blodget
“In the past few months, investors have gone from being generally bullish about the economy and stock market to increasingly concerned that we may be headed for another recession. For now, however, the consensus is still that we’ll trudge along with slow growth but avoid an actual downturn.
One advisor who thinks that a recession is almost a certainty, however, is Lance Roberts, the Chief Economist at Streettalk Advisors, a $400 million advisory firm.”
New Recession.
Not the induced by Obama , Bush recession.
this is Obama’s bigger recession.
Just think how bad it would be if we hadn’t had that Summer of Recovery!
QUIT LYING... say it... the truth will set you free... DEPRESSION!
LLS
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