More news that they won't tell you. The Fed has decided to throw up it's hands and surrender. Faced with what soon will be run away inflation due to the continual rise in the price of oil the Fed has decided to take a hands off approach to interst rates. What does this mean? Well, it's a time bomb waiting to go off.
With in the next four months analyst predict that the recession will deepen. The result will be a monumental drop in consumer spending by americans. Businesses that depend on luxury spending by americans will take a huge hit. Amaericans will for the most part end all discresionary spending leadinng to the closure of small and large businesses a like in the entertainment industry. The Rise in oil prices will hit the car industries and the electronics industry epecially hard. Their costs will spike some 50 to 75%. They will have no choice, but to pass these cost on to American consumers and consumers worldwide.
How does this affect consumers? Anyone who wishes to buy a petrolium based product will see huge increase in the price of those items. From Plastic bags to Flat screen televisions the consumer will take huge hits.
The fed is prepared to counter acting this inflation by allowing the United States to go into a drepression that could last a year or more Economists who do not admit anything as a rule know that a depression is coming. The stock Market will take a huge hit as healthy businesses struggle to survive. A Guestimate for where the stock market will go is 10,000 to 11.000 points before the masacre is over with Tech, Finacial Institutions and Home or Home supply affiliated companys ailine stocks taking massive hits. It won't be back to the days that seniors remember when walls were literally papered with worthless stocks, but it will be awful. This is the Hidden truth.