One Man’s Recession

Kurt Nimmo
TruthNews
November 13, 2007

Dan Dorfman, writing for the New York Sun, tells us that “Wall Street superstar” Jim Melcher is “worried about a recession. Not a normal one, but a very bad one. The worst since the 1930s. I expect we’ll see clear signs of it in six months with a dramatic slowdown in the gross domestic product.”

With the housing market in a state of collapse — and he says he believes it is far from over — Mr. Melcher argues that average homeowners will not be able to withstand the kind of recession he sees, given the added burdens of rising energy and food costs, and continued deterioration in the credit markets.

Noting that consumption is already slowing, Mr. Melcher figures sharply rising unemployment is inevitable. Another of his worries is that central banks around the globe, America’s included, are debasing their currencies, which is setting the stage for a new round of higher inflation. Our bear figures the next six to 12 months will be awful for investors as the market goes down “pretty substantially.” His frightening outlook calls for an additional 20% to 30% decline from current levels. A drop of that magnitude would put the Dow down in a range of roughly 9,100 to 10,400.

For some reason, these guys refuse to use thje “D” word instead of recession. Of course, this time around, with “rising unemployment” that this Geko-like character believes is “inevitable,” we will not witness humble folks falling passively into soup lines as they did in days of yore. It’s going to get nasty our there.

Lock and load.

Read entire NY Sun article