Economy
on brink of recession, Greenspan says
Tue Jun 24, 2008 9:50am EDT
JOHANNESBURG
(Reuters) - Former Federal Reserve Chairman Alan Greenspan warned on Tuesday
the U.S. economy was on the brink of a recession, with the chances of that
happening at more than 50 percent.
The
U.S. economy has been hit by a credit crisis which began in the sub-prime
mortgage market, prompting a series of interest rate cuts to help boost the
economy. But price pressures are growing, making more rate cuts unlikely.
Asked
if the U.S. economy was in recession, Greenspan said: "We are on the
brink."
Full article http://www.reuters.com/article/ousiv/idUSJAT00371420080624
·
World Economy Would Collapse If Oil Hit
$200, Deutsche Says
By Shigeru Sato and Yuji Okada
June 25 (Bloomberg) -- The global economy
would collapse if oil hit $200 a barrel, said the top energy analyst at
Germany's largest bank.
``Two-hundred dollar oil would break the back
of the global economy,'' Deutsche Bank AG's Chief Energy Economist Adam
Sieminski said in an interview today in Tokyo. ``Next step after $200 would
be global recession and bad news for everybody.''
Sieminski's comments come after Goldman Sachs
Group Inc. forecast oil may rise to between $150 and $200 within two years as
supply growth, especially from producers outside the Organization of Petroleum
Exporting Countries, fails to keep pace with demand. Deutsche Bank is due to
release its oil-price forecast on June 27.
Full story http://www.bloomberg.com/apps/news?pid=20601072&sid=am42p9xBTXh4&refer=energy
·
American Express Says Late Card Payments
Increasing (Update3)
By Erik Holm
June 25 (Bloomberg) -- American Express Co.,
the biggest U.S. credit-card company by purchases and cash advances, said
customers are falling further behind on their debt, signaling the economy is
worsening.
``Business conditions continue to weaken in
the U.S. and so far this month we have seen credit indicators deteriorate
beyond our expectations,'' Chief Executive Officer Kenneth
Chenault said in a statement today announcing the company would receive as
much as $1.8 billion in a settlement with competitor MasterCard Inc.
Full article http://www.bloomberg.com/apps/news?pid=20601087&sid=a5XZ_dtNNtPc&refer=home
·
Americans' loss of confidence: Worse even than it looks
3:00 AM, June 25, 2008
Like a hypnotherapist, the Federal Reserve keeps trying to talk
us into an economic recovery.
"You will not need lower interest rates to feel
better," Chairman Ben S. Bernanke tell us in so many words -- something he
and his fellow Fedsters are likely to repeat again today as they gather and,
almost certainly, hold their benchmark rate at the current 2%.
But the latest survey of consumer confidence shows that the
Fed's relatively hopeful message isn't registering. Americans feel downright
terrible about the economy as it is, and their expectations for the near future
are even more depressed, according to the Conference Board's June consumer
confidence report, issued Tuesday.
Full article http://latimesblogs.latimes.com/money_co/2008/06/like-a-hypnothe.html
· Reuters
Goldman cuts
financials, admits goofed on upgrade
Monday June 23, 5:03 pm
ET
BANGALORE
(Reuters) - Goldman Sachs & Co strategists urged stock investors on Monday
to "underweight" U.S. financial and consumer shares, admitting it was
wrong when it upgraded both sectors just seven weeks ago.
The
downgrades sparked selling in the two sectors as investors feared that weakening
consumer demand and deterioration in the credit markets will weigh on
profitability.
"We
boosted our consumer discretionary and financials weights in May on the belief
the sectors would benefit from bank recapitalizations and fiscal
stimulus," Goldman strategists led by David Kostin wrote. "Our thesis
was clearly wrong in hindsight."
Full article http://biz.yahoo.com/rb/080623/financial_research_goldman.html
·
House
prices, consumer confidence dive
Tue Jun 24, 2008 5:04pm EDT
By
Lynn Adler
NEW
YORK (Reuters) - Consumer sentiment slid to a 16-year low in June while house prices
suffered record annual drops in April, according to data Tuesday that suggested
a retrenchment in spending that will keep squelching economic growth.
The
Conference Board's monthly survey of consumers showed the overall index of
consumers' mood fell to 50.4 in June, the lowest since 47.3 in February 1992.
The
index has now dropped by more than half since 111.90 last July, before the
housing market troubles triggered the most severe credit crisis in at least a
decade.
"To
put it in perspective, that's a bigger decline than what we saw after the
September 11 attack and Hurricane Katrina," said Dana Saporta, economist
at Dresdner Kleinwort Securities.
Full
article
http://www.reuters.com/article/businessNews/idUSN2433847420080624?feedType=RSS&feedName=businessNews
|
· Condo Meltdown June 25, 2008
condo
associations that are in a financial bind from mounting foreclosures are now
targeting lenders who have taken back units from owners in default but are
themselves failing to pay their share of maintenance fees. As
more units end up in the hands of lenders, the banks and mortgage servicing
companies are responsible for maintenance payments for those units. But
administering the growing pool of real estate has proved challenging for
lenders. Full
article http://www.dailybusinessreview.com/Web_Blog_Stories/June/Association_trns_tables.html |