Thursday, Dec 11, 2008
The bottom is reached, again!
FT.com: Banking in New York.
The last bastion of the U.S. economy has collapsed. The U.S. economy will contract by 4.5 percent in the current quarter. The ugly recession accompanies us into the next year," said Harm Bandholz, an economist at UniCredit Markets & Investment
Posted by v stor @ 07:52 PM (283 views) Add Comment
3 Comments
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1. mdmick said...
http://www.hindu.com/2008/12/12/stories/2008121255471500.htm
states:
"The pound sterling was also losing strength against the U.S. dollar and other major international currencies causing alarm among investors while eroding the purchasing power of ordinary Britons".
Assuming this to be true, let me see if I have this straight.
The dollar is doing really really badly.
The pound is falling compared with the dollar.
Not just against the dollar and the euro but other currencies too.
A suggested reason: UK tax payers will be paying back the huge borrowing made by the bail out attempt of the government; so I guess that they will not be
having a lot of money left for spending and causing businesses to prosper.
That's bad, isn't it?
2. drewster said...
The US economy will contract by 4.5% in a single quarter?! That's pretty insane! Or do they mean an annualised rate of 4.5% ?
In recent years the US economy has grown at a steady rate: 4.4% (2005), 3.2% (2006), and 3.2% (2007). Even a fall to 4.5% per year would be dramatic.
3. drewster said...
mdmick,
In summary the purchasing power of most Britons is rapidly being eroded; so our standard of living (ill-defined though it is) will be falling.