Busted: Bankers and The Global Economy

July 2, 2008

Welcome to the “Slow-Motion” Recession

“It’s a slow-motion recession,” said Ethan Harris, chief United States economist for Lehman Brothers. “In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we’re not getting the classic two or three negative quarters. Instead, we’re expecting two years of sub-par growth. Growth that’s not enough to generate jobs. It’s kind of a chronic rather than an acute pain.” Harris should have some idea as his company is a major player as part of the problem as an investment banker. Yep, things have “kind of collapsed.” Conditions are making honest men out of economists. Pervasive weakness is a more accurate concept.

The European Union bankers have a more apocalyptic take on what to expect here (more…)

February 5, 2008

Feeling the Silence

bernankenigelparry.jpgThe silence is noticeable. The U.S. Federal Reserve has been very quiet except for making measured changes. There is no effort to apply publicity. You could almost hear a pin drop if it were not for the din of the press. “The Reserve Bank of Australia, the Bank of England and the European Central Bank are all due to meet and dealers will be focusing on whether they are concerned about the severity of the U.S. slowdown and whether (more…)

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