If this were to happen,it would be devastating for stocks and the jobless and could sink America deeper into an economic cesspool characterized by further joblessness, declining home ownership, and turmoil.
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New York, NY (PRWEB) December 06, 2011
The probability of a U.S. recession is likely at less than 50%; however, there are increasing signals that a recession could emerge not only in the U.S. but in Europe as well, according to George Leong, long-time analyst and contributor for Profit Confidential.
“If this were to happen,” writes Leong, “it would be devastating for stocks and the jobless and could sink America deeper into an economic cesspool characterized by further joblessness, declining home ownership, and turmoil.”
“Portugal is in trouble,” writes Leong. The country’s 10-year bond yields exploded upwards to 13.85% last Thursday. Fitch just downgraded the country’s credit rating to junk status.
“The problem is that the junk rating means it will be very expensive for Portugal to raise debt and the high carrying costs will be difficult to maintain on the books,” says Leong.
Economists polled by Reuters predict that Portugal’s GDP will shrink by 2.9 % in 2012.
The eurozone grew a miniscule 0.2% in the third quarter, threatening to contract and drive another recession at a time when there is financial Armageddon in Europe. The next big financial collapse could be in Italy where the 10-year Italian bond is yielding around seven percent. In addition, the Spanish 10-year bond yields are hovering around 6.5%. The fear is that the critical seven-percent levels were the breaking point that triggered the move by Greece and Portugal to ask for emergency funding.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.
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