As China’s Losses Mount, Confidence Turns to Fear
This is what China is afraid of, should their economy begin to slow down
NAPM sinks to 38.90 from 43.5 in September
In the last two months, business activity fell off a cliff. Hurricane Ike and the Boeing strike contributed to the sharp downturn, but the breadth of production losses across industries shows that there is a more fundamental explanation: the U.S. economy is deleveraging.
—Daniel J. Meckstroth, the chief economist of the Manufacturers Alliance
My forecast is I don’t see any economic growth through 2009. The credit crisis reached up and grabbed the throat of the global economy and choked off economic growth.
—Richard Fisher, President of the Federal Reserve Bank of Dallas
China’s foreign-exchange reserves stand like mountains in contrast to the capital-hungry conditions in much of the rest of the world. These reserves lend resilience to China’s economy, and, in turn, help to buffer Asian economies.
—Jeffrey Knight, the chief investment officer at Boston-based Putnam Investments, which manages $137 billion
It’s better to die what you are than to live a stranger forever
—Saul Bellow, through Mintouchian, The Adventures of Augie March
If you print enough money, you can create inflation
—Kenneth S. Rogoff, a former chief economist at the International Monetary Fund.
Specter of Deflation Lurks as Global Demand Drops
By PETER S. GOODMANPublished: November 1, 2008Consumer cutbacks could lead to falling prices, suffocating investment and worsening joblessness for months or even years.
the last time it fell even for a single quarter was in 1991, and there hasn’t been a decline this steep since 1980, when the economy was suffering from a severe recession combined with double-digit inflation.
When Consumers Capitulate
By PAUL KRUGMAN
Published: October 31, 2008
Sooner or later, American consumers were going to have to pull in their belts. But the timing of the new sobriety is deeply unfortunate.
- GDP down .3%
- Real Consumer Spending down 3.1%
- Real Spending on Durable Goods down 14%
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