Thursday, Mar 01, 2007
worries over US economic outlook
Times: Downgrade of growth figures puts US rates in the balance
Concerns over the US economy persist as figures released yesterday indicated growth in the fourth quarter slipped to an annual rate of 2.2, significantly lower than initial stimates of around 3.5%. This increases the liklehood of the federal reserve reducing interest rates to kickstart the economy.
Posted by jellycaster @ 08:57 AM (138 views) Add Comment
9 Comments
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1. harold said...
"This increases the liklehood of the federal reserve reducing interest rates to kickstart the economy."
... and wave bye bye to the dollar. They've reached the end of the plank I'm afraid - nothing doing but to jump off.
Jellycaster, flooding the site with articles prevents discussions from developing. Please limit it to one or two 'choice' articles a day. Thanks.
2. bingo said...
The US treasury acknowledges the need to cut the deficit in their trading account. If you notice, their imports were down (in particular from China) and exports were up in the last quarter. Toyota are to build another plant in the States whilst the larger US manufacturers are having to restructure. But I see hint at some protectionism creeping into their forecasts. Similar situation started the 2nd WW in the Pacific.
Agree with Harold, would've posted yesterday but by the time I had thought about what to write, the story was off the bottom of the page already, and also agree that there wasn't a lot of quality in the stuff that was on there anyway. I think there is enought to comment on regarding the effects of the global economy on our personal lifestyles (house prices et al).
3. In-between-jobs said...
Jellycaster, keep up the news feeds- there is so much going on out there, we need all the info we can get to build up the bigger picture. And it's not looking pretty
4. harold said...
In-between-jobs, want a constant news feed? - surf the net. Want a discussion group? - have articles stick around for more than five mins before being bumped off the list.
Anyway, what was your point?
5. paul said...
Harold, I think jellycaster is doing a sterling job posting articles. If you don't like the quantity or quality, you can post yourself of course.
The diappearance of artciles is one of the limitations of the design of the site, and one we have to live with. I suppose with that in mind a few less articles might be good but then again if the alternative is too few articles appearing on the site then I've got no problem with jellycaster posting as much as he wants.
The fed can't just lower rates to shore up the economy, unless they want the dollar to be reduced to bogroll value.
6. sold 2 rent 1 said...
Paul,
"The fed can't just lower rates to shore up the economy, unless they want the dollar to be reduced to bogroll value."
They can. They want to. They will.
It is the only way they can correct the trade defecit and pay off their debts.
If devaluation happens to fast then inflation will let rip and thats a big problem.
7. harold said...
"I think jellycaster is doing a sterling job posting articles. If you don't like the quantity or quality, you can post yourself of course." Paul
Well, at least we had a chance to debate it... just.
"...and pay off their debts". S2R1, I'm not sure, other than with hyperinflation (and therefore total economic collapse), that there is even an outside chance that the US will be able to pay off its debts. What is each American family's share of the debt?, a house at least.
8. holding out said...
I get the impression the Fed is itching to cut rates. We are in a similar position but I don't get the impression the BoE wants to cut rates (DB insider from the Fed excepted).
9. sirgoogle said...
I hope they cut rates. I'm going on hols to the US next month.