What is the economic roller coaster doing around the globe? It is important to ask that question, being that we are living in a globalized economy in which each developed nation's economy feeds on its neighboring nation's economic survival.
"BEIJING/TOKYO, Dec 10 (Reuters) - Deflationary fears spreading over the global economy are crashing into Asia's manufacturing base as data on Wednesday showed a sharp slowdown in wholesale price growth in the region's top two economies, Japan and China.
The situation is quite severe. We are slipping into a deflationary recession risk pretty fast," said Isaac Meng, an economist with BNP Paribas in Beijing.
China's growth is expected by the World Bank to slide in 2009 to 7.5 percent, below a level of 8 percent widely regarded as the minimum needed to absorb millions of people entering the work force each year. It expanded 11.9 percent in 2007." -- FXStreet.com
"ROME (Dow Jones)--Italian gross domestic product fell the most in a decade in the third quarter due to lower exports and investments, while October industrial output figures showed that the fourth quarter is likely to be even worse.
Final third-quarter data from statistics office Istat Wednesday confirmed that Europe's fourth-largest economy fell into a deep recession..." -- The Wall Street Journal
"Dec. 10 (Bloomberg) -- The U.K. government and central bank are considering plans to pump billions of pounds into the economy as the bank rescue package and the lowest interest rates since 1951 fail to halt a slide into recession.
The Bank of England and the Treasury are weighing a strategy known as “quantitative easing” where authorities increase money supply to boost bank reserves. The initiative was last used by Japan at the start of the decade.
Prime Minister Gordon Brown’s government is frustrated that banks are rationing credit after tapping the Treasury for cash and guarantees to prop up their own balance sheets. Policy makers both in the U.K. and the U.S. Federal Reserve are looking beyond traditional interest-rate tools to revive the economy." -- Bloomberg.Com
"WASHINGTON, US — Congressional Democratic leaders and the White House have apparently reached a deal to spend US$15 billion on emergency loans for struggling U.S. automakers.
It would create a government “car czar” to dole out the loans, with the power to force the car makers into bankruptcy if they didn’t cut quick deals with labour unions, creditors and others to restructure their businesses and become viable.
Congressional Republicans, left out of negotiations on the package, are expressing grave reservations and may seek to block it.
Republican Senator David Vitter promised to filibuster the measure, which could delay a final vote for days." -- The London Free Press
So, while information is power, positive information is even more powerful than that the ever looming and extremely obvious recession and economic collapse. Therefore, here are some pluses to the current economy.
Oil prices are down to $45.57 a barrel on the New York Mercantile Exchange. This means that gas prices are lower and therefore there is more money in our pockets.
30-year Mortgage Rates are down (as of yesterday) to about 5.53% according to Forecasts.org. Therefore, if you have good credit, you may want to purchase a home, or refinance your existing dwelling.
Additionally, in these lackluster consumer spending times, all types of stores are competing more than they ever have for your business. There are multiple deals and coupons, so take advantage this holiday season.
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