Nightmare Slingshot Whiplash Double Dip
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
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Comments
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