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Wednesday, October 5, 2011
Yield Spread Confirming Recession Call
It is now becoming clearer, even to the mainstream media, that the "Big 'R'" is rapidly approaching, or already upon us. Without further stimulus from the government the economy will continue its slide into negative growth. Unfortunately, it doesn't look like the "Calvary" will be charging to the rescue anytime soon. Bernanke, at this point has effectively punted to the Whitehouse for stimulative action. The Whitehouse is embroiled in partisan politics which will keep any action from occurring until most likely after the next election. This leaves the economy and the financial markets to their own devices, and much like kids without parental supervision, they are running amok.
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