With business sentiment continuing to fall, a standard normal recession is starting to sound good… But it seems many economists are now predicting a much worse Deep Recession.
It seems that American housing prices may fall as much as 20% before leveling out leaving many with negative equity (owing more than their house is worth).

The sub prime crisis has plenty more legs in it yet and we won’t see the worst of it until the 2nd half of the year.

Rising inflation is also damping business and consumer confidence.

Interesting times ahead.

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