Given that the Japanese went to zero percent interest rates in order to pull their economy out of stagnation, one of the big questions in the markets is whether the US will do the same?
One obstacle has been hurdled now that President Bush has signed the bailout legislation, but there are still problems ahead. A deteriorating economy, seized-up credit markets, and poor corporate earnings must still be dealt with.
Copper has collapsed. So has shipping. Both are telling us that they world’s economy is slowing down. Housing prices are falling faster. Job cuts are accelerating. Local governments are getting hit by lower revenues.
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