NOT a Happy New Year
In the next few weeks expect a torrent of companies shutting down and firing employees. HR departments are just preparing the releases.
State workers are taking pay furloughs.
I am already hearing pretty amazing stories about retail. Expect companies to cut back on travel dramatically as well as other expenses. Basically the country is shutting down and we should get pretty strong evidence in the next few weeks into the early part of the New Year.
In the mean time, banks can borrow money at near zero then turnaround and buy treasuries in practically unlimited quantities. It is we the taxpayers paying treasury interest so effectivey we are giving banks money and paying them interest on the money we give them....why can't citizens act on similar terms??? Do you think banks have an incentive to loan to you or a business when they can get free guranteed money with interest????
As long as this situation persists....expect conditions to get much worse.