Stock Market Today Unstable After Debt Deal, Unemployment Report

Friday, 05 Aug 2011 12:00 AM

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The U.S. stock market dropped more than 500 points Thursday as both Wall Street and Main Street showed disapproval with the debt deal and fears over unemployment data. The drop came after a slight rise in the market Wednesday, the first after nearly two weeks of declines, marking the longest stock loss streak since 2008.

The Labor Department's monthly employment report, which came out Friday, showed a less than impressive dip in the unemployment rate, falling to 9.1 percent from 9.2 percent.

While it’s slightly optimistic that employers added 117,000 jobs in July, the economy needs twice as many new jobs per month to rapidly reduce unemployment. What’s more, it’s likely the unemployment rate fell because some unemployed workers simply stopped looking for work, meaning they are no longer counted.

Aside from unemployment, fears about the global economy also have financial markets in a panic, and investors fear additional stock-market losses in Asia, the debt crisis in Europe, and the potential for the United States to fall into a double-dip recession.

This bleak forecast doesn’t come as a shock to some, however.

Prophetic warnings nearly four years ago from famed economist and author Robert Wiedemer, including a major stock market collapse, out-of-control national debt, and soaring unemployment rates, have fallen on deaf ears as they rapidly come to fruition.

“The money from heaven will be the path to hell,” Wiedemer said.

“The medicine will become the poison,” he explains. “We will likely see a 90% stock market drop, 50% unemployment, and a federal debt leading to 100% annual inflation as early as 2012.”

Editor’s Note: Over one million Americans have heard the evidence for a
90% stock market plunge, a federal debt skyrocketing inflation, and 50% unemployment. Find out how to prepare.

The rejoicing from Capitol Hill over the passing of the debt deal legislation has quickly become the poison as the stock market dropped more than 500 points Thursday, erasing all of 2011’s gains.

The last time the stock market performed like this was in 2008, an economic conundrum also predicted by Wiedemer two years earlier. In 2006, he was one of the few economists who accurately predicted the four-bubble meltdown in the housing, stock, private debt and consumer spending markets that almost sunk America.

Then in 2009, he warned people about the federal debt and the ensuing unemployment and inflation issues that are spiraling out of control today. Warnings that went unheeded by financial leaders such as former Federal Reserve Chairman Alan Greenspan and current Federal Reserve Chairman Ben Bernanke and also were ignored by the mainstream media.

Today, Bernanke’s estimate that the economy would grow more in the second half of 2011 is being called into question, and Americans are slowly grasping the gravity of the “debt reduction” repercussions.

Repercussions such as major federal budget cuts could strip thousands of unemployed of their benefits and an inevitable tax hike will exacerbate the burden on an already beleaguered labor force.

Editor’s Note: Over one million Americans have heard the evidence for a 90% stock market plunge, a federal debt skyrocketing inflation, and 50% unemployment. Find out how to prepare.

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