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| Fears of deeper recession grow, markets in tailspin |
| 2008-10-25 |
| Signs of a sharp slowdown in Europe and a barrage of profit warnings and job cut announcements from companies around the world intensified fears of deep global recession on Friday. Stock markets slid across the globe, currencies experienced almost unprecedented volatility, and oil and other commodities tumbled on fears of plummeting demand that would accompany a global economic slowdown. "I would characterize this as a shell-shocked mentality out there," said Thomas di Galoma, head of government bond trading at Jefferies & Co. in New York. "It's all the deleveraging of equities ... It's causing an issue for everyone." The economic crisis prompted further U.S. government intervention: Officials stepped in to help finance the sale of ailing Cleveland-based National City Corp and prepared to announce 20 more banks will receive capital injections. Speculation about a bailout of the U.S. auto industry also increased as General Motors has intensified negotiations to buy Chrysler's auto operations, intending to seek U.S. government aid to support any deal, people familiar with the talks told Reuters. Chrysler said it was slashing about 5,000 white-collar jobs and industrial conglomerate ITT said it would also cut an unspecified number of positions. Many analysts declared recession in Europe after reports showed the private sector economy in the 15 euro zone countries on track for its worst performance since the recession of the early 1990s. Britain's economy experienced a much deeper-than-expected 0.5 percent contraction in the third quarter, its first contraction in 16 years, making a recession all but inevitable. |
| Posted by:Fred |
| #4 You got to remember for the MSM it is a depression. Papers dropping staff by the bushel full or going out of business. Earnings in the tank. Wait till corporations wake up to the drop in viewership on the 'news' programs during the economic retrenchment. When the ad revenue drops accordingly, we'll get another outcry of pain. Fear is something at everyone in that business is now living with. It's a feature, not a bug. :) |
| Posted by: Procopius2k 2008-10-25 22:27 |
| #3 This is just Reuters doing their part to scare the public into voting for Bambi. Expect more Doom! Gloom! and 'WE ARE ALL GOING TO DIE!!!!' from the Tanning Bed Media as we close in on election night. |
| Posted by: CrazyFool 2008-10-25 19:32 |
| #2 This is just Reuters doing their part to scare the public into voting for Bambi. Expect more Doom! Gloom! and 'WE ARE ALL GOING TO DIE!!!!' from the Tanning Bed Media as we close in on election night. |
| Posted by: CrazyFool 2008-10-25 19:32 |
| #1 It doesn't take anything to actually happen to grow fear. Fear is one of those things that feeds on itself. The more "fear" is spread, the more the likely the reality will come to pass. For what its worth, the mall was packed today, the parking lot was full to brimming. The stores were full. People are spending money. I have not seen anyone wearing a "sandwich board" seeking a job and no new soup kitchens have opened here since the 1930's. |
| Posted by: crosspatch 2008-10-25 19:28 |