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Joining me now for more on today's sell off in what is likely to happen tomorrow and beyond -- Pacific CEO chief global strategist leadership.
Peter good to have you with us -- is the author of the book -- -- economy grows and why it crashes.
And also whether Moody's chief economist John Lonsky Jon thanks for being here Wall Street Journal global deals editor Dennis Berman Dennis good to see you.
-- start Peter this markets selling off I mean it was wholesale today.
-- you know.
President was right about one thing you know if bush had been a better president we would have elected Obama so that part of it is his -- but you know the market is selling off.
Because people are finally coming to the conclusion that the stimulus -- work recession is coming back and people are calling it a double dip I think it's all part of one big depression.
That was temporarily interrupted by the stimulus spending but all we did is spend ourselves into a deeper hole and I think we're facing a bigger economic contraction now because the stimulus in the balance -- what we face before.
Even though that -- macro numbers from the Commerce Department don't -- support that view at least in terms of contraction and -- your thoughts you got to keep your.
-- on jobs growth if we do you grow payrolls by more than 50000 jobs over the month of July that it would be a positive sign that we tell us that at least we're not in -- double dip.
And He also that we wanna consider that a lot of the downside risk has been exhausted by the beating this economy has already taken.
Got consider home prices how much lower are real estate prices gonna go in some parts of law country and meanwhile we're now looking at very low treasury bond yields we should have had a -- in a quarter percent treasury bond yield and 2008 we did it.
And I think because of this latest drop by treasury bond yields a thirty year mortgage He was gonna go to 4% if not -- work and I will they have that right now.
The double lady industrial company bond yields are at their lowest level.
Since may of 196645.
Years ago so that's gotta provide some pleasant -- absolutely -- lost.
As well they did not go up because we're not looking at a different America central older America this is Japan like interest rates interest rates are gonna remain.
Under three and a half percent for a much longer period of time that you imagine if inflation is going -- inflation is -- always not always -- their critical won't work because of high unemployment after Labor Day -- final -- were real estate market -- -- -- consumer prices for things like food and energy they're gonna go up they're gonna force -- they're eventually gonna before.
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