Thread: We’re on the verge of a great, great depression. The Fed

Wall Street Baffled by Slowing Economy, Low Yields: Trader

Published: Wednesday, 1 Jun 2011 | 11:06 AM ET
By: Margo D. Beller
Special to CNBC.com
Video at the link

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

"What we’ve got right now is almost near panic going on with money managers and people who are responsible for money," he said. "They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

"We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake."

Stocks extended losses http://www.cnbc.com/id/43236131/ after the manufacturing fell below expectations in May http://www.cnbc.com/id/43236208/ and the private sector added only 38,000 jobs during the month. http://www.cnbc.com/id/43234521/

"Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything," Yastrow said. "We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

"We have many, many homeowners that are totally underwater here and cannot get out from under. The technology frontier is limited right now. We definitely have an innovation slowdown and the economy’s gonna suffer."

However, he said he wouldn’t sell stocks.

"Any bears out there better be careful because the dividend yields on these stocks look awesome relative to all the other investment vehicles out there," Yastrow said. "So bears are going to have to find a new way to express their discontent with the U.S. economy."

http://www.cnbc.com/id/43236764

http://drudgereport.com/

Dow tumbles 200 points... http://finance.yahoo.com/news/Wall-Stre ... et=&ccode=

Private Sector Jobs Grew By Only 38,000 in May... http://www.bloomberg.com/news/2011-06-0 ... n-may.html

Planned Layoffs Up... http://www.cnbc.com/id/43234521

Manufacturing Slows... http://www.cnbc.com/id/43236208

How about bringing back the Manufacturing Base that was the engine of a once great economy?
How the hell are people supposed to make money without jobs? You think this country can run on fast food joints, Wal-Marts, and other service type jobs alone?
This is what the progressives have been trying to do. Why is anyone suprised at this? Unless of course its just mock suprise

Timberrrrr: Manufacturing ISM At Lowest Since September 2009 http://www.zerohedge.com/article/timber ... bankruptcy

Goldman Cuts NFP Forecast To 100,000 - Sheer Panic On Wall Street As The Heroin Addicts Demand QE3 NOW http://www.zerohedge.com/article/goldma ... nd-qe3-now