http://money.cnn.com/2008/02/05/news/economy/recession/index.htm
http://money.cnn.com/2008/02/05/markets/markets_wrap/index.htm?postversion=2008020518
A bad service sector report sent stocks on their biggest fall in three months, over 370 points.
"This is the most unequivocal sign we've had that the economy is weakening," said Stephen Stanley, chief economist at RBS Greenwich Capital. "We've had data pointing in that direction, but they've been all over the map and it always seemed like there was a silver lining in the weak reports."
"There is nothing in this report that was redeeming," he added. "It's simply terrible."Looks like there may be rough economic times ahead. I'm guessing, though, that most of my readers are conservative spenders and won't be amongst the hardest hit if a recession is truly here on our doorsteps. Savings, avoiding unnecessary debt, establishing a food supply, and reducing reliance on the "grid" will help the prepared through tough times. If you haven't put anything back, start now. Food is a good start.
If you've got cash to spare, if could be a very smart time to put it into precious metals and hard-goods, firearms and ammo specifically. The Fed is worried about inflation, and we've been seeing it happen around us. Precious metals, firearms, and ammo will retain or increase in their value. With recessions usually comes increased crime, and with a very good possibility of a gun-banner in the White House next year, firearms could be a very, very wise investment.
Expect the value of the dollar to further decrease if recession comes rolling through. My concern here is the Chinese cash/investment holdings...imagine what would happen if they decide to switch over to Euros while the U.S. was in the midst of a harsh recession...not good at all.
