John

Cripes. This Ain’t Good.

In News on January 22, 2008 at 1:48 pm

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(Pic from lusi @ sxc)

News of an approaching recession in the US has been rumoured since last year, and unless the US Elections provides some kick ass results and economic reforms (Come on, Obama!), 2008 could be… uh. Start hoping and praying for a good year ahead.

This breaking from AP: “Asian Markets Extend Losses Amid Worries That US Is Headed for Recession.”

Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.

“Unless we get some positive ‘shock effects,’ such as drastic measures from the U.S. government, there is almost no hope for a recovery in stocks,” said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.

Markets have been plunging amid pessimism about the ability of the U.S. government to prevent a recession. The Federal Reserve has indicated it will lower interest rates further, and President Bush has proposed an economic stimulus package that includes $145 billion in tax cuts, but investors around the world are doubtful that the measures will lift the economy quickly.

The U.S. economy has been battered by a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major U.S. banks.

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