Recession hitting most parts of global economy
Monday, 8 December 2008
Fazle Rashid from New York
MORE than 533,000 non-farm jobs were eliminated only in November making it the biggest job losses in the US in 30 years. This, the analysts underscored, indicate the depth of a recession that is spreading rapidly from financial centres to most parts of global economy.
The Organization for Economic Cooperation and Development (OECD) said a strong slowdown in every leading and all emerging economies, apart from Brazil, is visible. This is almost indescribably terrible, a reputed paper quoted an economist as saying.. The number of delinquent borrowers failing to pay their monthly instantments is rising. More than 7.0 per cent of mortgage loans are in arrears.
President Bush and Barack Obama, president-elect expressed grave concern over loss of jobs. Bush said this was the impact of the recession. This is the first time that President Bush admitted that the US economy is in recession. The National Bureau of Economic Research, a body of prominent economists, had earlier declared that the recession began in December 2007.
President-elect Obama said there was no quick or easy fixes to the crisis which has been many years in making. He predicted the situation would get worse before it gets better. An analysts predicted US unemployment rate would reach a staggering 8.0 per cent in 2009.
The scars of the deteriorating economic meltdown are visible all around. Gordon Browne and Nicolas Sarkozy will put pressure on Angela Merkel for a concerted economic stimulus to revamp the economy.
Meanwhile, banks inside the Gaza Strip in the Middle East have been shut down because of the shortage of cash. Gaza financial institutions have all run out of notes and coins.
Banks on either side of the Atlantic have been blamed for the current economic crisis and are now being held responsible for prolonging it because they are not lending. The banks which have been given fresh cash infusion to the tune of $3.0 trillion ($3000 billion) are not lending. Businesses and consumers are still being choked.
Boeing is delaying delivery of its dreamline aircraft by at least two years costing the aircraft maker billions of dollars in compensation payments. Merrill Lynch (ML), the 94-year-old bank, is set to be acquired by Bank of America. The shareholders of the ML approved the move. Merrill Lynch's woes were due to its massive overexposure to securities backed by sub-prime mortgages
In another developments, the pace of corporate debt repurchases in Asia has accelerated sharply amid a slump in prices .The price of some bonds has been forced down below 50 per cent to the dollar . This has left the market with dearth of buyers. Cashrich companies are making best use of the situation to buy back their debts at ultra cheap rate and make profit from transaction.
MORE than 533,000 non-farm jobs were eliminated only in November making it the biggest job losses in the US in 30 years. This, the analysts underscored, indicate the depth of a recession that is spreading rapidly from financial centres to most parts of global economy.
The Organization for Economic Cooperation and Development (OECD) said a strong slowdown in every leading and all emerging economies, apart from Brazil, is visible. This is almost indescribably terrible, a reputed paper quoted an economist as saying.. The number of delinquent borrowers failing to pay their monthly instantments is rising. More than 7.0 per cent of mortgage loans are in arrears.
President Bush and Barack Obama, president-elect expressed grave concern over loss of jobs. Bush said this was the impact of the recession. This is the first time that President Bush admitted that the US economy is in recession. The National Bureau of Economic Research, a body of prominent economists, had earlier declared that the recession began in December 2007.
President-elect Obama said there was no quick or easy fixes to the crisis which has been many years in making. He predicted the situation would get worse before it gets better. An analysts predicted US unemployment rate would reach a staggering 8.0 per cent in 2009.
The scars of the deteriorating economic meltdown are visible all around. Gordon Browne and Nicolas Sarkozy will put pressure on Angela Merkel for a concerted economic stimulus to revamp the economy.
Meanwhile, banks inside the Gaza Strip in the Middle East have been shut down because of the shortage of cash. Gaza financial institutions have all run out of notes and coins.
Banks on either side of the Atlantic have been blamed for the current economic crisis and are now being held responsible for prolonging it because they are not lending. The banks which have been given fresh cash infusion to the tune of $3.0 trillion ($3000 billion) are not lending. Businesses and consumers are still being choked.
Boeing is delaying delivery of its dreamline aircraft by at least two years costing the aircraft maker billions of dollars in compensation payments. Merrill Lynch (ML), the 94-year-old bank, is set to be acquired by Bank of America. The shareholders of the ML approved the move. Merrill Lynch's woes were due to its massive overexposure to securities backed by sub-prime mortgages
In another developments, the pace of corporate debt repurchases in Asia has accelerated sharply amid a slump in prices .The price of some bonds has been forced down below 50 per cent to the dollar . This has left the market with dearth of buyers. Cashrich companies are making best use of the situation to buy back their debts at ultra cheap rate and make profit from transaction.