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Richard Michael Abraham

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Nightmare Slingshot Whiplash Double Dip

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Nightmare Slingshot Whiplash Double Dip

U.S. economists agree that unemployment generally is a two month lagging indicator after a recovery.  The so called recovery by all accounts began in June, 2009.  Unemployment is not expected to bottom out until June, 2010.

This represents a 10 month disparity.

The weight of the unemployment rising to possibly 11% in the months ahead, and the need for the FED to increase interest rates to cut off inflation are in direct conflict.

When the FED is required to raise interest rates within the next three months, the jolt to unemployment will be significant, causing incessant high and lingering unemployment.  

A slingshot backlash will then cause a business slowdown, leading to a double dip nightmare.  

The temptation is to put your money into stocks.

I believe GOLD will out distance the recent stock surge, and that now is the time to buy beaten down Commercial Real Estate Investments, now at all time low prices, 40% down, and still heading to their bottom in six months.

Buy Commercial Real Estate Investments now, factor in a 6 month additional drop of about 7% in your pricing, and ride the wave up.

Warmest,

Richard Michael Abraham, Founder

The REDI Foundation   www.redii.org    info@redii.org

New!!! How To Earn Huge Commissions "Restructuring Commercial Mortgages For Buyers"
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Comments

By John Bennett,  Fri Nov 6 2009, 06:28
Great call, we got 10.2% just minutes ago,
on the way to 18%
I think (I have a very special Milton Friedman crystal ball) the stuff has not reached the fan yet.

if we get Nancy health care and/or Cap and Trade I think we well head for the ditch, and this will be the good old days.

does this scare you????? It does me
By Richard Michael Abraham,  Fri Nov 6 2009, 10:49
Hi John, thanks again for keeping an an eye on my articles. I value your keen perception. Yes, I am scared because I do not view the past three years as a normal, cyclical downturn, but rather as an aberration of capitalism, and I am also concerned that the Wall Street markets are global, and Wall Street could care less about the 30,000,000 Americans unemployed or underemployed since they've already replaced these consumer/buyers with foreign buyers in emerging countries. I am concerned about the deficits which heavily depend on the health of Main Street, and I see dire consequences for Main Street Americans and small business who will not be able to pick up the tab. The FED will need to raise interest rates to curb high inflation. That's when the slingshot will backlash and sting every American with a lethal bite. Wall Street and U.S. economic Policy are on the same boat. Main Street has been left downstream. Richie

 
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