09 April 2009

Economic Slowdown - When are going to hit the ground?

It is a trillion dollar question that when are we going to hit the bottom before making a recovery. This is a very hot news and it is minutes after US Fed released minutes. In summary, Fed sees that the economy is deteriorating and downside risk is high. And another point here is the economy is deteriorating more than expected and it is likely that the customers will hold back the spending which again lead to production cuts which leads to lay-offs. This is going to be cyclic and will take sometime to break the cycle and to go in counter direction. In summary, there is lot of downside risk in short term before something happens in a long term

Hold your breath and read through these pages.

Google News
Yahoo News

Again, in another two months, the markets are going to see another bottom, may it be capital markets or job market. Now, we should believe someone who says the recovery is going to take three years :-(. Hard truth, but it is truth, we have to digest and move forward.

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