US slowdown has begun!

Fed officials said growth would slow to a range of 1.8% to 2.5% next year, down from growth around 2.45% in 2007. Some Fed officials were more pessimistic, putting growth down as low as 1.6% next year.

Real estate--- the damage has been done with more delinquencies and foreclosures,

The Fed alone will not be able to prevent this crisis is that its main jurisdiction is over the banks -- and the problem is now centered in the financial markets. This is because the banks no longer have these loans on their books, having turned them into securities and sold them to others.

In turn, these mortgage-backed securities were used as collateral for the issuance of debt, whose value is far lower than originally thought.
This has caused massive write downs by holders of these securities, cutting into their profits -- but, more important, depleting confidence in the financial system. And this reduction in confidence is spreading beyond the financial markets and residential real estate to commercial real estate as well.

The bankers are now holding securities whereby their capital is being reduced and thus their ability to make new loans is limited.So the unavailability of funding for business expansion on new plants and equipment will add to a slow down of activity.This is overwhelming the positive effect that the lower-valued dollar is having on the exports,a good balance.

Seventeen reasons America actually needs a recession by Paul B. Farrell,
Tracking the Dow on Tuesday 20/11/07
The Dow opens near overnight level and creeps up till 10:45am and starts sliding after the Fed's reading of October FOMC minutes."It's a slowdown"Towards the 45minutes near closing,the fake bulls make a last minute dash to set a trap.The shooting star followed by a bullish hammer is the signal.At closing was a four-legged doji---which means the frog can leapt up or down at a tremendous speed.

"Humpty-dumpty had a great fall."That spinning white doji at the bottom shows a chance of a rebound.The maket-makers have a chance of playing at the bottom tail if it has a bearish view right up to 12,830 level and vice versa.