Morgan Stanley Issues Full U.S. Recession Alert
December 11th, 2007What’s next? A prediction about the sun rising in the East?
Via: Telegraph:
Morgan Stanley has issued a full recession alert for the US economy, warning of a sharp slowdown in business investment and a “perfect storm” for consumers as the housing slump spreads.
In a report “Recession Coming” released today, the bank’s US team said the credit crunch had started to inflict serious damage on US companies.
“Slipping sales and tightening credit are pushing companies into liquidation mode, especially in motor vehicles,” it said.
“Three-month dollar Libor spreads have jumped by 60 to 80 basis points over the last month. High yield spreads have widened even more significantly. The absolute cost of borrowing is higher than in June.”
Posted in Economy | Top Of Page
Yeah, the only reason the facade of normalcy remains kinda-sorta intact is that the number-crunchers are scrambling to keep everything intact until the Winter Holidays are over. Xmas is a big freaking deal in the USA. I’m probably as cynical about the current state of affairs as anybody here, and I must admit that the whole Christmas thing continues to have its sentimental appeal for me. I don’t know why, but it does…