Larry MacDonald submits: This past week the news flow rekindled recession fears in the United States. Lehman Brothers came under a cloud again, the credit ratings of bond insurers Ambac and MBIA were downgraded, May unemployment showed a jump from 5% to 5.5%, and crude oil shot up to a record $139 a barrel. The U.S. was headed for a recession in 2001 but Federal Reserve Chairman Allan Greenspan dodged it with a dramatic reduction in interest rates and the help of a bubble in real estate. My guess this time around is that current Fed Chairman, Ben Bernanke, is willing to allow more of a downturn to emerge. Complete Story » ...
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Larry MacDonald submits: This past week the news flow rekindled recession fears in the United States. Lehman Brothers came under a cloud again, the credit ratings of bond insurers Ambac and MBIA were downgraded, May unemployment showed a jump from 5% to 5.5%, and crude oil shot up to a record $139 a barrel. The U.S. was headed for a recession in 2001 but Federal Reserve Chairman Allan Greenspan dodged it with a dramatic reduction in interest rates and the help of a bubble in real estate. My guess this time around is that current Fed Chairman, Ben Bernanke, is willing to allow more of a downturn to emerge. Complete Story » ...