Like coming events casting their shadows, these news don’t project
a good image at all....
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US jobless data worse than feared
US employers shed 80,000
jobs in March, Labor Department figures have shown, in the latest sign that the
US economy may be falling into recession.
The decline was the third
monthly drop in succession, and worse than market expectations of a 60,000
reduction Story from BBC NEWS:http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7330619.stm
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Goodbye to the dollar?
By Kenneth Rogoff
(The writer is Professor of Economics and
Public Policy at Harvard University, and was formerly chief economist at the
IMF.)
Over the past six years, the value of the trade-weighted dollar has
fallen by more than a quarter, as the US has continued to rack up historically
unprecedented trade deficits. With a soft economy, a badly compromised
financial system, and serious concerns about rising inflation, the long-term
dollar trend is downward, however the current crisis ends. And it is not over.
The Federal Reserve's bailout of the financial system is unlikely to
stand up unless banks find fresh capital, and lots of it. Ultra-rich sovereign
wealth funds have the cash to rescue US banks. But they are unlikely to want to do so at this point, even if the US
political system allowed it. Instead,
as the credit crunch and housing price decline continue, an epic mortgage
bailout appears increasingly likely, possibly costing US taxpayers a trillion
dollars or more. The problem is that after so many years of miserable
returns on dollar assets, will global investors really be willing to absorb
another trillion dollars in US debt at anything near current interest rates and
exchange rates?
Full story
http://www.sundaytimes.lk/080406/International/international00010.html
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Skybus
Ends Service, Third Airline to Fold This Week April 5, 2008 15:44 EDT http://www.bloomberg.com/apps/news?sid=ap5QHqDdrbBo&pid=20601103
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Railcars idle as economy falters The cars parked are the type that haul
cargo from ships on the coast to points inland, mainly imported goods
— an area that’s starting to slow down due to the weak economy.
Analysts say transportation usually is among the first sectors to show signs of
a downturn in the economy and with Americans feeling pinched — employers
eliminated 63,000 jobs last month amid declining consumer confidence — it
could be a while before the idle cars move.
‘‘If you take a look at transportation, both trucking and rail, you
will see that things started softening last summer,’’ said Arnold
Maltz, associate professor of supply-chain management at Arizona State
University.
‘‘The reason you are seeing all those cars parked is that the
consumer economy translates into slower imports.’’
Full story in http://www.helenair.com/articles/2008/04/04/top/top/50lo_080404_railcars.txt
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232,000 US Jobs Have Already Vanished In 2008