Warning: Expect Economic Aftershocks

by Robert Williams, Publisher

How much does it cost to fix a wrecked economy? $11.6 trillion.

That’s the amount the Fed spent, lent, or guaranteed over the last year in an effort to push the world’s biggest economy – ours – on an upward trajectory again.

And it worked (at least on paper). The U.S. economy grew at 3.5% in the third quarter.

But keep the “end of recession” champagne on ice, for now…

Technically, the recession is over. But on Tuesday, Federal Reserve officials said that unemployment will likely remain at historically high levels well beyond next year. They even cautioned that the prevailing “jobless recovery” may be vulnerable to shocks.

Yikes.

Fact is, we’ve already endured 22 consecutive months of job losses. And the economy is out more than 8 million jobs, according to Labor Department data. Talk about a “lost decade…” nearly 2 million fewer workers are employed in the private sector today than 10 years ago.

Clearly, with our collective purse strings still tight, higher oil prices may be too much to bear. (And spiking oil prices is likely the Fed’s main aftershock culprit.)

But David Fessler says that $100 oil is exactly what’s coming. Fortunately, he’s also got a way to play the oil industry.

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