NewsWhore
09-15-2008, 03:10 PM
During a conference sponsored by the Organization for Shopping Malls (ONEC), economist Carlos Asilis said that the government needed to adjust its spending so that the economy may evolve given the impact of the world global crisis that he forecast will worsen this year and next. He spoke of maintaining a surplus equal to 2.5% of the Gross Domestic Product above levels of previous years, as reported in Hoy. He said that the financial problem is not just one of sub-prime loans in the real estate market, but rather, the greater problem is that investment banks borrowed more and more money in recent years and used that to accumulate assets. Now there is pressure for less leverage and more liquidity.
He said that this would lead the US economy to decline 1 or 1.5%. Furthermore, he forecast recession periods for Europe and Japan. He said the effect would also be reflected in fewer remittances.
Meanwhile, The Wall Street Journal reports on the export boom and how it is benefiting farming and is just beginning to benefit the manufacturing sector, too. US exports of goods and services in the first half of the year rose at a US$52 billion annual rate, adjusted for inflation, up 7.1%. Of the total, commodities accounted for 41% and manufactured products 12%. The difference is that US manufacturers outsource a large amount of their production overseas.
More... (http://www.dr1.com/index.html#6)
He said that this would lead the US economy to decline 1 or 1.5%. Furthermore, he forecast recession periods for Europe and Japan. He said the effect would also be reflected in fewer remittances.
Meanwhile, The Wall Street Journal reports on the export boom and how it is benefiting farming and is just beginning to benefit the manufacturing sector, too. US exports of goods and services in the first half of the year rose at a US$52 billion annual rate, adjusted for inflation, up 7.1%. Of the total, commodities accounted for 41% and manufactured products 12%. The difference is that US manufacturers outsource a large amount of their production overseas.
More... (http://www.dr1.com/index.html#6)