Filed under: Alan Greenspan, bernanke, Big Banks, Britain, California, Credit Crisis, DEBT, Department of Defense, DoD, Economic Collapse, economic depression, Economy, ethanol, Europe, european union, Federal Reserve, food prices, Great Depression, Greenback, henry paulson, House, housing market, Hugo Chavez, imf, Inflation, interest rate cuts, morgan stanley, Oppenheimer, rate cut, southern california, Stock Market, subprime, subprime lending, tax rebates, tent city, United Kingdom, US Economy, Venezuela, War On Terror, WW2
Fed Lowers Interest Rates 50 Basis Points
Bloomberg
January 30, 2008
The Federal Reserve lowered its benchmark interest rate by half a percentage point to 3 percent, the second cut in as many weeks, to prevent the U.S. economy from sinking into a recession.
“Today’s policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity,” the Federal Open Market Committee said in a statement after meeting today in Washington. “However, downside risks to growth remain.”
Morgan Stanley Strategist: Head For The Hills
Bloomberg
January 30, 2008
Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with “seed, fertilizer, canned food, wine, medicine, clothes, etc.”
The “etc.” must mean guns.
“A few rounds over the approaching brigands’ heads would probably be a compelling persuader that there are easier farms to pillage,” he writes in his new book, “Wealth, War and Wisdom.”
Biggs is no paranoid survivalist. He was chief global strategist at Morgan Stanley before leaving in 2003 to form hedge fund Traxis Partners. He doesn’t lock and load until the last page of this smart look at how World War II warped share prices, gutted wealth and remains a warning to investors. His message: Listen to markets, learn from history and prepare for the worst.
Chance of recession at least 50 percent: Greenspan
Reuters
January 30, 2008
The likelihood of the economy slipping into recession is at least 50 percent, former Federal Reserve Chairman Alan Greenspan was quoted on Wednesday as saying.
“I believe the probability of a recession is at least 50 percent, but up to now there are few signs that we are already in one,” Greenspan said in an interview with weekly newspaper Die Zeit published in German. “In my opinion, it will probably happen but the facts suggest we are not there yet.”
Asked whether central bankers and financial policymakers could head off a U.S. recession, Greenspan said: “Probably not. Global economic influences today are stronger than almost anything that monetary or fiscal policy can counter them with.”
“Long-term real interest rates have significantly more influence on the core of the economy than decisions by national governments,” he added. “And central banks have increasingly lost the ability to influence these long-term rates, whereas 20 or 30 years ago they still dominated there.
“So the more important question today is in which direction long-term real interest rates are heading.”
The Fed is expected to cut interest rates again on Wednesday as part of its effort to offset the effects of a deep housing slump and credit crunch. This cut would follow a 75 basis point reduction last week to 3.5 percent and mark one of the deepest and fastest rate-cutting episodes since the early 1980s.
The U.S. economy grew at a 4.9 percent annual rate in the third quarter of 2007, but gloomy economic data this month — notably a report of weak hiring in December — suggests growth has slowed abruptly.
Southern California Shanty Town / Tent City
http://www.youtube.com/watch?v=jmeHiFZUWtE
Recent News:
U.S. slump spreading around the globe, IMF warns
http://www.theglobeandmail.com..IMF30/TPStory/Business
DOD wants $70 billion more for wars
http://www.rawstory.com/news/mo..n_more_for_wars_01282008.html
US recession will dwarf dotcom crash
http://www.telegraph.co.uk/mone..money/2008/01/28/ccusecon128.xml
Have you been noticing the cost of groceries going up? You can thank government subsidized ethanol
http://www.csmonitor.com/2008/0128/p03s03-usec.html
House passes economic stimulus legislation
http://www.reuters.com/article/topNews/idUSWBT00826820080129
Paulson says U.S. housing correction “necessary”
http://www.reuters.com/article/ousiv/idUSN3021974120080130
Banks May Write Down $70 Billion, Oppenheimer Says
http://bloomberg.com/apps/news?pid=206010..Uo.XM4&refer=home
Chavez Urges Withdrawal From U.S. Banks
http://ap.google.com/article/ALeqM5..b2TVDLEfFqy8fgD8UE21180
EU Plans To See Economy Blown Away
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/01/27/nbook127.xml
More than 1m people could lose homes in credit crunch, warns City watchdog
http://www.dailymail.co.uk/pages/liv..1084&in_page_id=1770&ct=5
Fed risks ‘blood on the floor’ on rate cuts
Paul on Economic Stimulus Concerns
Home Foreclosure Rate Up 79%
Global Meltdowns and the Perversions of Lucre
Black Box Economy
Mortgage Crisis Creates Ghost Town
U.S. Economic Collapse News Archive
Leave a Comment so far
Leave a comment
noworldsystem.com 