Bleakest economic outlook awaits new US president

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From Fazle Rashid
NEW YORK, Nov 4: Voting in the US presidential election began at 6 a.m (Eastern Standard time) today at the end of the most expensive and the longest running campaign. It is also being described the most unpredictable in the history of America.
Two presidential candidates Barack Obama and John McCain wound up their campaigns in a whirlwind fashion as new data underlined the scales of economic crises awaiting the winner.
The winner, the analysts are predicting, will confront the bleakest economic outlook for the country in a generation.
The ISM index (measure used for manufacturing sector) fell from 43.5 in September to 38.9 in October. The component of the index are extraordinarily weak, showing production of goods, as well as orders, declining sharply amid slowing global demand. Sales of new cars and trucks in the United States plummeted to levels not seen in the auto industry in 25 years. This raised grave concerns about the survival of America's three giant automakers, namely, General Motors, Chrysler and Ford. The government has turned down request from automakers for infusion of money in the industry.
One TV channel and a Website said they would start signaling the viewers from early this evening which candidate appeared to have won the presidency, despite the unreliability of some early exit polls in the last presidential election. CBS said it would become clear by eight pm eastern standard time who would be the next occupant of the White House Many are questioning the wisdom of convening the Group of Twenty (G20) meeting on Nov 15, only 11 days after the presidential election. President Bush's decision will have no bearing on the president-elect. Nor will others be able to arrive at a conclusion without America's active and meaningful participation. The US convention makes it obligatory to seek the view of the president-elect on all major issues.
The bad economic news continue to dampen any forecast of the economy making a turnaround in the near future. A former executive of Swiss bank UBS has been jailed for his role in a Wall Street insider ring that has been described as the most pervasive in recent memory. The chief of Societe Generale, France's most famous bank, allayed fears about the poor health of the bank. Germany's second largest bank Commerzbank is to boost its capital with an immediate injection of $10.5 billion from the government treasury. England's Llyods TSB scaled down speculations about the impact of the state ownership of the bank. The bank management expressed determination to break free of government management Circuit City, the largest chain of electronic goods in the US will cut more than 7000 jobs and bring down the shutters in many of its outlets. The German car maker Daimler will offer buy out packages to its workers in the Alabama plant
The Wall Street Firms have vowed not to use bailout money $125 billion to pay bonuses to the executives. Britain will be the worst performing large European economy next year slipping into deep recession, the European Commission (EC) predicted. Fears are growing in the shipping industry over potentially big losses due to collapse in rates to charter ships.
South Korea, fourth largest economy of Asia has unveiled an $11 billion stimulas package to boost stagnant domestic demand.
India will boost public spending and cut interest rates to protect its fast growing economy in the face of global downturn. The prospects of failing growth rate and job losses will deeply impair the electoral prospects of the ruling Congress party.
Wen Jiabao, prime minister of China warned that high growth was needed to maintain social stability as fresh evidence emerged that China's economy is slowing down quickly.