A Perfect Storm
At the high risk of annoying my beloved Don, I must regretably report that Morgan Stanley is the first bank to issue a full blown recession alert for the US, warning of a "perfect storm" for consumers as the housing crisis spreads.
In a report "Recession Coming" released yesterday, the bank said the credit crunch had started to inflict some serious damage on US companies, resulting in a sharp slowdown in business investment. It predicts that the Fed's interest rate cuts are too little, too late, and that a recession is inevitable.
The "R" word makes Don and I argue. Oh dear. I really do hope that his fluffy economic view of the future is right, for all our sakes, but for now I remain firmly Chicken Little. In the meantime ladies and gentlemen, place your bets.
I resolved not to blog about economics any more. Clearly I blew it.
Here's Lou-Lou, ready to beat us pessimistic economists into submission.
In a report "Recession Coming" released yesterday, the bank said the credit crunch had started to inflict some serious damage on US companies, resulting in a sharp slowdown in business investment. It predicts that the Fed's interest rate cuts are too little, too late, and that a recession is inevitable.
The "R" word makes Don and I argue. Oh dear. I really do hope that his fluffy economic view of the future is right, for all our sakes, but for now I remain firmly Chicken Little. In the meantime ladies and gentlemen, place your bets.
I resolved not to blog about economics any more. Clearly I blew it.
Here's Lou-Lou, ready to beat us pessimistic economists into submission.
posted by Lin at 6:58 PM
2 Comments:
It doesn't take professional economic forecasters to know what's going on here, in the States. We are in for a shit-storm and the housing debacle is simply the visible part of the iceberg above the water line. Here, in Southern California, the financial sodomy that has already started in a big way and without the help of a lubricant is spreading like a wildfire. Recently, the dunce in the White House blamed people for not understanding what they were signing when greedy loan people qualified homeowners for loans their income didn't qualify for. Forget about a Perfect Storm, a Shit Storm is what's coming!
While government agencies and lending institutions here in the U.S. must accept a great deal of the blame--perhaps even the largest share of that blame--the reality is that there were a great many intelligent people who knew--or should have known--exactly what they signing.
The difficulty now is finding a solution that helps those who were scammed while forcing the others to own up to their mistakes without taxpayer assistance.
Post a Comment
Links to this post:
Create a Link
<< Home