Shaila’s Weblog

Getting out of the doomed Economy

Posted on: February 28, 2008

As some of you may be aware of our US Prez has announced his stoopid statement that “the US economy is in a slowdown but not headed into a recession”. I thought, the US Prez will announce his stoopid stimulus package part II, so I’ll just wait until Tuesday to see how the markets react, and then I’ll make an informed decision. But eventually, it didn’t turned up the way it has to be. He went on with his remarkable speech which seems to be just a pious phraseology and nothing else.

With the deepening recession in the housing market, facing an all time high 17% fall in residential property investment, cancelled out any positive effects from the fall in energy prices. Consumer spending is still the mainspring of US growth and remained quite strong (3.1% annualized rate). But working families are more dependent than ever on debt.

Stock market with almost a panic attack last Friday has stole most my retirement money and I am so scared now that I have started selling all my mutual funds as well. Even though I’m not retiring anytime soon, I don’t have the stomach to watch my mutual funds turn the clock back on what, till date, have been pretty impressive gains.

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February 2008
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