An Uncertain Future

Thursday, August 26, 2010 - 4:26pm

New unemployment claims fall, but economists warn of new wave of foreclosures.

Uncertainty continues to rule the economy.

New home sales have dropped to the lowest level in 50 years and according to industry group one homeowner in ten could soon face foreclosure.

News on the employment front is better.

First time unemployment filings dropped sharply last week.

The mixed signals have left the stock market in a tizzy.

"The real concern here is that uncertainty about the economic outlook and pessimism about the outlook can become self fulfilling," notes RBS Greenwich Capital economist Michelle Girard.

All eyes are on Ben Bernanke.

The Federal Reserve Chairman could reveal his new plan on Friday.

He's already lowered bank-to-bank interest rates to zero and bought $1.25 trillion in mortgages.

Still, some fear a double-dip repeat recession.

Some of Bernanke's Fed colleagues are openly demanding he do more than keep interest rates low.

They're worried the economy could spiral down and remain down, like Japan's did in the 1990s, leading to a lost economic decade.

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