Could the Dow Sink Below 6,000?

In September 2007, I predicted the current recession, the Fed dropping the federal funds rate to zero, deflation, home mortgage interest rates "will drop below 5 percent and possibly 4 percent," and numerous other things. Of those numerous other things I also said the Dow Jones Industrials will drop below 8,000 and "possibly" drop below 6,000.

My suggesting the Dow could plummet below 6,000 is not a 100% prediction, more of a strong feeling, a musing of a possibility that represents how weak the economy has become under the disastrous Republican economic policies of the last thirty years. And so we may yet reach that sad stage as billions of dollars of illusionary money disappears.

The below 6,000 possibility is now in sight. But we're not likely to reach there overnight, it's more a matter of months if we ever reach it, and there is yet a good possibility such a dubious outcome can be had.

Oil Prices Drop: Oil Companies Jack up Gasoline prices

Gasoline prices dropped to 37 dollars a barrel last week, whiles the oil companies manipulated prices to jack up the price of a gallon of gasoline.

Another Economic Forecast reached

Last week, the Associated Press reported that average home mortgage rates had dipped to 4.96 percent. In September, 2007, I forecast that home mortgage interest rates would drop to less than five percent during our current recession, which I also accurately forecast.

In that same memorandum, I also forecast "that it was possible home mortgage rates could possibly drop to less than four percent."

People scoffed at me for suggesting such nonsense. In September 2006, when I predicted that a recession would occur sometime between the fall of 2007 and the summer of 2008, and that it would be "the worst since 1981, and possibly since the Great Depression," even long time friends laughed at me. Now I'm doing the laughing.

Job Claims Up Again

As expected from this Republican managed economic disaster, unemployment claims jumped over 1/2 million in December 2008, and the unemployment rate rose to 7.3 percent.