U.S. Payrolls fell by 17,000 for January Feb. 7/08

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U.S. payrolls fell by 17,000 for January – the first decline since August of 2003. Construction spending, housing starts, and building permits are all tanking, as are home sales and prices. Further, weak consumer sentiment indicators all point to drops in consumer spending.

As if that’s not enough, it took all of 2007 for the Dow to post a seven per cent gain. It took just 17 days of frenzied selling in January to wipe out last year’s advance, and then some. Globally, stock markets have been declining since early October. Ireland’s benchmark stock index is off by more than 37 per cent; Japan is down 27 per cent: London 17 per cent: and Toronto 12 per cent.

According to Eric Sprott, renowned Toronto fund manager, “What we fear is that we are in the early stages of a systemic financial melt-down. When you look around at the home builders and the monoline insurers who are down 80 per cent and the big U.S. banks down 50 per cent, those are monumental declines, and they’ve been incredibly abrupt. All these huge financial institutions are over-levered.”

–Peter
forexmentor.com

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