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Harsher times for Chile
Chile’s outlook has darkened as commodity prices drop In the light of the international economic turbulence since September—which has brought sharp drops in commodity prices, the value of the peso and in investment expectations—the outlook for Chile’s economy has deteriorated notably. A significant slowdown in growth is expected next year, and while the financial sector is strong enough to withstand fallout from the global crisis, the country’s corporate sector may be more exposed. At its monetary policy meeting of November 13th the board of the Central Bank kept its monetary policy rate unchanged at 8.25%, a decision that it said [...]
Inside the world's most annoying economic crisis.
It was no surprise that the cab driver tried to rip us off. We're in Buenos Aires, Argentina, after all, and we'd made the rookie error of requesting a vague destination instead of giving a precise address—naturally he interpreted this as a license to take us from La Boca to the Plaza de Mayo by way of southern Nicaragua. What we hadn't expected was the predicament the driver found himself in when it came time to pay. The fare had come to 14 pesos and 6 centavos. I proffered a 20-peso note (worth about $6.70), and he handed back 50 [...]
Chinese wealth fund CIC turns back on western banks
China Investment Corporation is to put the brakes on making investments in western banks until governments come up with coherent policies to cope with the global economic downturn. Lou Jiwei, the chairman of the sovereign wealth fund, said today: "Right now, we do not have the courage to invest in financial institutions. We have to wait for the time when there won't be massive collapses of financial institutions." China had lost confidence in many financial institutions, Lou said, because foreign governments seemed to be changing their policies "every week". The announcement by CIC, which has a 9.9% stake in US [...]
Large cut in Thai interest rates
Thailand's central bank cuts interest rates by the biggest amount in eight years, as it aims to lift an economy hit by unrest.
Fighting Recession: Despite Denials, Berlin Mulling Further Stimulus Measures
Germany's ruling coalition is debating additional ways to stimulate the flagging economy. One of the ideas discussed is to give every adult a 500 voucher to spend on consumer goods -- a scheme that would cost up to 40 billion.
Sharp Slowdown in Services Sector in November
In another report, worker productivity slowed in the summer while wage pressures increased.
FROM THE BLOG : Missing crisis point
The main thrust of international debate on the economic crisis has been on how to salvage the US financial system, yet numerous proposed measures fail to address a crucial issue - wherewith is future growth coming? - Francesco Sisci
G-20 hot on hocum
The declaration released after the recent Group of Twenty economic summit in Washington, DC, is a significant - and contradictory - document, riddled with meaningless and empty hortatory language. As leading economies still lurch from one massive bailout maneuver to the next, it offers little hope for the future. - Robert Weissman
Treasury Rebuffs Watchdog’s Request for More Oversight of Bailout
by Paul Kiel , ProPublica - The first big report from the Government Accountability Office on the $700 billion bailout is a pretty mild affair. Given that TARP is just 60 days old, the watchdog office says it’s too soon to assess the impact of having pumped billions into the country’s banks. And since the Treasury Department is still working at getting its special bailout section, the Office of Financial Stability, off the ground (it had about 48 full-time employees as of late last month and Treasury hopes to have as many as 200), the GAO report is mostly full [...]
Once More into the Breach for Paulson?
by Paul Kiel , ProPublica - Treasury Secretary Hank Paulson is "debating" returning to Congress to ask for a second helping of bailout money, reports the Wall Street Journal. If he were to take the plunge, he’d have to submit a report detailing how the second $350 billion installment of the $700 billion bailout would be spent. Congress could then vote to approve or deny the additional funds. The big ask would come next week, if Paulson decided to ask at all, the Journal reports. (It's not clear from the piece what the Journal's source is for Paulson's thoughts. No [...]
Rouble joins Russia's pointers to decline
Russia's foreign currency reserves are being fast eroded as the government tries in vain to brake the declining value of the rouble, weakened by tumbling commodity prices. Under conditions of increasing economic hardship all around, Russia looks to be on the road to a still more authoritarian state. - Robert M Cutler
Second round of capital injections expected
Governments will soon have to give widespread support to banks and insurance companies which have been hit by the credit crisis for the second time.
Retail Sales May Show Drop
November sales of apparel, luxury goods and electronics plunged from year-ago levels, said a unit of MasterCard.
After $1tn cost of housing collapse, America is now bracing itself for the credit card bill
The $326bn rescue of Citigroup was, some investors hoped, a turning point. It prompted a concerted rally on Wall Street last week as shareholders were reassured that the US authorities would not allow another major bank to collapse. The Dow Jones gained more than five straight days for the first time in more than a year; the S&P; 500, considered a barometer of the domestic economy, had its best week in 34 years. "The government pretty much came out and said it would not let Citigroup fail and it was not going to wipe out the equity holders either," said [...]
Seven Questions: William H. Donaldson
A former SEC chairman sorts out where the bailout money is going and why some things are slipping through the cracks.
UK job market weakening rapidly
The UK job market weakens as permanent placements decline at record levels, a new survey suggests.
Boom to bust
Latvia's once rampant economy seeks economic aid
Japan's Doing Better Than You Think
The Sun may not be rising, but then again, it isn’t setting either
European Regulators Again Revise Bank Subsidy Rules
The European Commission is concerned that financial infusions might be improper subsidies.
China’s Economy, in Need of Jump Start, Waits for Citizens’ Fists to Loosen
Tenacious thrift, once an admirable quality in China, has become a liability as the nation’s export-driven economy slows.