Economic PAIN Forecast On Heels Of Job Report

Tom Redburn is predicting serious financial pain in tomorrow's New York Times:

"... the economy actually lost jobs last month, ending a four-year string of uninterrupted gains in employment."

"A sharp rise in home foreclosures and a fall in home prices would also hurt, reinforcing the Democratic argument that Republican economic policies are primarily designed to help the rich while leaving the middle class less secure and the poor worse off."

"... an economic slowdown, perhaps even a recession, seems all but inevitable later this year and into 2008."

You got that right.

"With the latest jobs data, there’s no longer any doubt that the Fed will act to cut rates — perhaps by 1/4 percentage point, perhaps by 1/2 — on Sept. 18."

I hope he's right on that. If he's not, we're all in DEEP trouble.

Even with a half-point cut we may be in for one mighty rough ride.

And, in related news, you can now buy Alan Greenspan's new book, "The Age of Turbulence", from me: