2009 Predictions: U.S. Economy – General
These predictions were originally posted on my website www.williamstickevers.com on January 10, 2009. The information from the Reuters report was posted on April 29, 2009.
Economy: General U.S.
- In 2009 the nation will continue to undergo a fierce economic contraction that began during the financial panic of 2008. The massive deleveraging of the nation’s equities market, along with a declining dollar followed by hyper-inflation will devastate the nation’s financial brand. (Jan. 10, 2009)
NOTE: WASHINGTON (Reuters) – The U.S. economy contracted at a steeper-than-expected pace in the first quarter, weighed down by sharp declines in exports and business inventories, according government data on Wednesday that showed the economy was still deep in recession. Gross domestic product, which measures total goods and services output within U.S. borders, dropped at a 6.1 percent annual rate, the Commerce Department said, after shrinking 6.3 percent in the fourth quarter. Analysts polled by Reuters had forecast GDP falling at a 4.9 percent rate in the January-March quarter. Output has declined for three straight quarters for the first time since 1974-1975. (April 29, 2009)
- The U.S. recession will increases in severity throughout 2009 becoming a full-scale depression by early 2010. (Jan. 10, 2009)
- Due to extreme economic stress the U.S. stock market will undergo series of major corrections in 2009 with the Dow possibly going below 4000. (Jan. 10, 2009)
- Despite the fact that Americans are drowning in debt, due to the current economic woes, we will see an overall increase in the rate of consumer credit card spending. (Jan. 10, 2009)
- The $700 billion government bail out that was passed by Congress in December will prove to be insufficient in freeing up liquidity in the financial markets to allow credit to properly flow again. The Rasmussen Employment Index, a monthly measure of U.S. worker confidence in the employment market, will fall to an all time record low by the end of 2009. (Jan. 10, 2009)