Are We in a Recession?

Recession Risk?

All one has to do is read any newspaper or listen to the TV and hear all the wonderful economic news.

Do I really need to mention all the issues ranging Sub prime, Housing crisis, or my favorite all the SIVs( Special Investment Vehicles or toxic paper that needs to be written off) that banks all over the world are holding.

When I even ponder the thought that the worlds largest banks and financial companies have a special pouch in which they place all their bad loans which they do not want to value, it is reminiscent of Enron and WorldCom.

An analyst from Royal Bank of Scotland estimated the potential write off of bad loans... sub prime or even commercial paper is from around 250 billion to 500 billion dollars.

Everyday seems to bring a surprise. Yesterday was E*TRADE...Who will be tomorrow?

The real funny thing( at least to me) recently a Blue Chip Economic Indicator report based on a group of economists came out and the consensus indicated expectations that growth will be sluggish into next year and NO RECESSION!

Never has this report been accurate to anticipate a Recession.



Andrew Abraham