US slips back into recession

[notsuperstitious]

well they might know you as a dumb jack asss?, they have the courtesy not to reveal on you?

When I need an idiot, I'll ring for you.

 

[Mitro]

You are right they are very friendly and we can compare them to parsi .they also sound like them

Oh. Have many bohri friends. They are very different and i can even joke about religion with them, something I strictly aviod with other muslims

 

[Viper0011.]

The US economy unexpectedly took its biggest plunge in more than three years last quarter, contracting at an annual rate of 0.1 percent and indicating a new level of vulnerability for the economy.

Ok guys, this isn't a 'recession' or anything. The US DoD / Defense related industry is the largest employer and industry in the US. So severe cuts to this area will be felt across all industries. That's that. It's just market correction. A lot of government's stimulus related measures and taxes increased, the defense spending decreased, etc so you'll see correction.

The truth is that the recession now seem like a far cry. Even with the debt - default discussion. An economy this big doesn't really have to worry too much about it. The DOW Industrial hit the 14000 peak mark (for a minute) on Thursday or Friday last week. If the article here really reflected a recession, the market would've responded to it by falling tremendously. Not setting a record gain. Remember, DOW's ONLY been to 14000 mark 17 times in the history. The last one was in 2007 (per-recession). So that tells you that things are pretty much back to almost pre 2008. The housing, jobs and other markets have seen a lot of gain since June of last year. Unpredictable activity. There are many larger cities that have almost no houses to sell or build new ones but the demand is crazy. Even with the changes in payroll taxes and tax code. The industrial market combined with the Real Estate market is one of the best predictable of the economy. The home prices have risen 20% almost since last May. That's a super fast increase. We were predicting 2014 for such activity. So now the US economy's headed straight to another boom!!

 

[Capt.Popeye]

Oh. Have many bohri friends. They are very different and i can even joke about religion with them, something I strictly aviod with other muslims

Bohris are some of the most dynamic muslims that one can find. They concentrate on their lives and work all the time. Just as the Ismaili Khojas are some of the most progressive and educated muslims.

 

[KS]

When I need an idiot, I'll ring for you.

How many darkinskys does it take to answer a ringing phone ?

 

[Bobby]

If it happens ..it will be bad news for everybody....

 

[Star Wars]

Its happening already, a long time back

Billionaires Dumping Stocks, Economist Knows Why

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.


With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?

After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock.

Editor’s Note: Wiedemer Gives Proof for His Dire Predictions in This Shocking Interview.

Before you dismiss the possibility of a 90% drop in the stock market as unrealistic, consider Wiedemer’s credentials.

In 2006, Wiedemer and a team of economists accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States. They published their research in the book America’s Bubble Economy.

The book quickly grabbed headlines for its accuracy in predicting what many thought would never happen, and quickly established Wiedemer as a trusted voice.

A columnist at Dow Jones said the book was “one of those rare finds that not only predicted the subprime credit meltdown well in advance, it offered Main Street investors a winning strategy that helped avoid the forty percent losses that followed . . .”

The chief investment strategist at Standard & Poor’s said that Wiedemer’s track record “demands our attention.”

And finally, the former CFO of Goldman Sachs said Wiedemer’s “prescience in (his) first book lends credence to the new warnings. This book deserves our attention.”

In the interview for his latest blockbuster Aftershock, Wiedemer says the 90% drop in the stock market is “a worst-case scenario,” and the host quickly challenged this claim.

Wiedemer calmly laid out a clear explanation of why a large drop of some sort is a virtual certainty.

It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

“Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

See the Proof: Get the Full Interview by Clicking Here Now.

And this is where Wiedemer explains why Buffett, Paulson, and Soros could be dumping U.S. stocks:

“Companies will be spending more money on borrowing costs than business expansion costs. That means lower profit margins, lower dividends, and less hiring. Plus, more layoffs.”

No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.

But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

Wiedemer’s video interview also contains a comprehensive blueprint for economic survival that’s really commanding global attention.

Now viewed over 40 million times, it was initially screened for a relatively small, private audience. But the overwhelming amount of feedback from viewers who felt the interview should be widely publicized came with consequences, as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog.

“Our real concern,” DeHoog added, “is the effect even if only half of Wiedemer’s predictions come true.

“That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”

http://www.moneynews.com/Outbrain/b...-stock/2012/08/29/id/450265?PROMO_CODE=FE8A-1
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not going to bold anything , just read the whole thing..pretty scary...