Federal Reserve officials are putting out the word that further interest rate cuts are unlikely from various platforms.
Fed Governor Kevin Warsh was forthright, ""Even if the economy were to weaken somewhat further, we should be inclined to resist expected, reflexive calls to trot out the hammer again,"
Fed Vice Chairman Donald Kohn, said the current stance of interest-rate policy "appears to be appropriately calibrated for now."
Janet Yellen, president of the Federal Reserve Bank of San Francisco, called the current level of rates "appropriate."
That does not mean the economy, very badly bruised by housing, credit and financial woes, is out of the woods.
The Fed, though, is hoping its powerful doses of cuts, along with the government's relief plan of tax rebates and breaks will help lift the economy in the second half of this year.
Many economists believe the Fed will hold its key rate steady at 2 percent, a four-year-low, at its next meeting on June 24-25 and probably in the entire 2008.
Visit for more details
http://news.yahoo.com/s/ap/20080525/ap_on_bi_ge/fed_loud_and_clear
Sunday, May 25, 2008
Monday, May 5, 2008
Friday, May 2, 2008
Britain would grow by 1.8 percent only in 2008
LONDON (Reuters) - The economy will slow sharply this year as consumers tighten their belts, a leading thinktank warned on Friday.
(Advertisement)
The National Institute of Economic and Social Research forecast Britain would grow by just 1.8 percent in 2008 after 3.0 percent last year.
http://uk.news.yahoo.com/rtrs/20080501/tuk-uk-britain-economy-niesr-fa6b408.html
(Advertisement)
The National Institute of Economic and Social Research forecast Britain would grow by just 1.8 percent in 2008 after 3.0 percent last year.
http://uk.news.yahoo.com/rtrs/20080501/tuk-uk-britain-economy-niesr-fa6b408.html
Wednesday, April 2, 2008
Bernanke's testimony to the Joint Economic Committee:
2.3.2008
For full text visit
http://news.yahoo.com/s/ap/congress_bernanke_text;_ylt=Aq4KhIoIOg5u.CDnuu_Y1Y9v24cA
Bernanke's testimony was shown live on many channels.
He said there may not be any growth in the first half of 2008, some contraction may be possible.
Thus Bernanke hited at the recession in the first half of 2008
For full text visit
http://news.yahoo.com/s/ap/congress_bernanke_text;_ylt=Aq4KhIoIOg5u.CDnuu_Y1Y9v24cA
Bernanke's testimony was shown live on many channels.
He said there may not be any growth in the first half of 2008, some contraction may be possible.
Thus Bernanke hited at the recession in the first half of 2008
Sunday, March 30, 2008
China Private Sector
March 2008
China's private sector booms with registered capital totaling 10.1 trillion yuan (US$1.4 trillion) in 2007, an annual increase of 22.7 percent.
Chinese private sector includes private firms and self-employed households.
http://www.chinafair.org.cn/english/News/newsdetail.aspx?Id=22363
China's private enterprises employed 120 million people by September this year, up 9.5 percent from the same month a year ago, said a senior official on Saturday.
Last year China's industrial and commercial authorities helped 2.54 million unemployed people find jobs in the private sector and nearly half of the country's new graduates entered private firms.
(Xinhua News Agency September 16, 2007)
http://www.10thnpc.org.cn/english/China/224621.htm
Social organisations
In China, those third sector organizations registered with the government are called civilian organizations which include three categories, i.e., social organizations, non-commercial institutions, and foundations.
According to the 2003 Statistics Report on Civil Undertakings Development issued by the Ministry of Civil Affairs, by the end of 2003, there are 266,612 reregistered civilian organizations. Among them, there are 142,121 social organizations There are 124,491 non-commercial institutions in the end of 2003.
As for the employment in the third sector, there are about 3 million paid staff working at civilian organizations in the end of 2003.
http://www.asianphilanthropy.org/countries/china/size.html
China's private sector booms with registered capital totaling 10.1 trillion yuan (US$1.4 trillion) in 2007, an annual increase of 22.7 percent.
Chinese private sector includes private firms and self-employed households.
http://www.chinafair.org.cn/english/News/newsdetail.aspx?Id=22363
China's private enterprises employed 120 million people by September this year, up 9.5 percent from the same month a year ago, said a senior official on Saturday.
Last year China's industrial and commercial authorities helped 2.54 million unemployed people find jobs in the private sector and nearly half of the country's new graduates entered private firms.
(Xinhua News Agency September 16, 2007)
http://www.10thnpc.org.cn/english/China/224621.htm
Social organisations
In China, those third sector organizations registered with the government are called civilian organizations which include three categories, i.e., social organizations, non-commercial institutions, and foundations.
According to the 2003 Statistics Report on Civil Undertakings Development issued by the Ministry of Civil Affairs, by the end of 2003, there are 266,612 reregistered civilian organizations. Among them, there are 142,121 social organizations There are 124,491 non-commercial institutions in the end of 2003.
As for the employment in the third sector, there are about 3 million paid staff working at civilian organizations in the end of 2003.
http://www.asianphilanthropy.org/countries/china/size.html
Friday, March 28, 2008
US recession could be severe
Friday 14th March 2008
The United States is in a recession that could be "substantially more severe" than recent ones, National Bureau of Economic Research President Martin Feldstein said on Friday.
http://news.yahoo.com/s/nm/20080314/bs_nm/usa_economy_feldstein_dc
The United States is in a recession that could be "substantially more severe" than recent ones, National Bureau of Economic Research President Martin Feldstein said on Friday.
http://news.yahoo.com/s/nm/20080314/bs_nm/usa_economy_feldstein_dc
China Population, Employment and Salary
Market-Oriented Reforms of China's Enterprises in Retrospect
http://www.china.org.cn/english/2003chinamarket/79520.htm
Population and Workforce
In 2003, the total population of China reached 1.292 billion (excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province). The population over the age of 16 was 998.89 million, of which the urban population was 423.75 million and the rural population 575.14 million; the economically active population was 760.75 million and the workforce participation rate was 76.2 percent. Among the population over the age of 16, the population with junior middle school education level and above took up 61.7 percent, and that with junior college education level and above, 6.6 percent. Among the population of technical workers, those of the elementary grade took up 61.5 percent, those of the intermediate grade, 35 percent, and those of the advanced grade, 3.5 percent.
Total Employment
In 2003, the total urban and rural employed population reached 744.32 million, of which the urban employed population was 256.39 million, accounting for 34.4 percent (see Chart 2), and the rural employed population was 487.93 million, accounting for 65.6 percent. From 1990 to 2003, the employed population increased by 96.83 million, an average increase of 7.45 million per annum.
Income
As the economy develops and job opportunities increase, the income of urban and rural residents keeps rising. From 1990 to 2003, the disposable income per capita of urban residents rose from 1,510 yuan to 8,472 yuan, an increase of 460 percent or a rise of 160 percent in real terms; and the net income per capita of rural residents increased from 686 yuan to 2,622 yuan, an increase of 280 percent, or a rise of 77 percent in real terms
http://english.gov.cn/official/2005-07/28/content_17992.htm
2006-07-22 10:52
A total of 34.7 billion yuan (4.3 billion U.S. dollars) will be spent on salary rises for 120 million people, including six million central and local government officials, 30 million employees from public institutions, and 50 million retired military servicemen and government employees in 2006.
In addition, the stipend standards for 30 million disabled military servicemen and family members of war heroes and military servicemen, and the basic subsistence allowances for urban dwellers, will also be raised.
http://www.chinadaily.com.cn/china/2006-07/22/content_647036.htm
http://www.china.org.cn/english/2003chinamarket/79520.htm
Population and Workforce
In 2003, the total population of China reached 1.292 billion (excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province). The population over the age of 16 was 998.89 million, of which the urban population was 423.75 million and the rural population 575.14 million; the economically active population was 760.75 million and the workforce participation rate was 76.2 percent. Among the population over the age of 16, the population with junior middle school education level and above took up 61.7 percent, and that with junior college education level and above, 6.6 percent. Among the population of technical workers, those of the elementary grade took up 61.5 percent, those of the intermediate grade, 35 percent, and those of the advanced grade, 3.5 percent.
Total Employment
In 2003, the total urban and rural employed population reached 744.32 million, of which the urban employed population was 256.39 million, accounting for 34.4 percent (see Chart 2), and the rural employed population was 487.93 million, accounting for 65.6 percent. From 1990 to 2003, the employed population increased by 96.83 million, an average increase of 7.45 million per annum.
Income
As the economy develops and job opportunities increase, the income of urban and rural residents keeps rising. From 1990 to 2003, the disposable income per capita of urban residents rose from 1,510 yuan to 8,472 yuan, an increase of 460 percent or a rise of 160 percent in real terms; and the net income per capita of rural residents increased from 686 yuan to 2,622 yuan, an increase of 280 percent, or a rise of 77 percent in real terms
http://english.gov.cn/official/2005-07/28/content_17992.htm
2006-07-22 10:52
A total of 34.7 billion yuan (4.3 billion U.S. dollars) will be spent on salary rises for 120 million people, including six million central and local government officials, 30 million employees from public institutions, and 50 million retired military servicemen and government employees in 2006.
In addition, the stipend standards for 30 million disabled military servicemen and family members of war heroes and military servicemen, and the basic subsistence allowances for urban dwellers, will also be raised.
http://www.chinadaily.com.cn/china/2006-07/22/content_647036.htm
Wednesday, March 26, 2008
26.3.2008
The Commerce Department reported that new home sales dropped 1.8 percent in February 2008 to a seasonally adjusted annual rate of 590,000 units, the slowest sales pace since February 1995. The decline was slightly worse than expected.
The median price of a home sold in February 2008 dropped to $244,100, down 2.7 percent from the level of a year ago.
The Commerce Department reported that new home sales dropped 1.8 percent in February 2008 to a seasonally adjusted annual rate of 590,000 units, the slowest sales pace since February 1995. The decline was slightly worse than expected.
The median price of a home sold in February 2008 dropped to $244,100, down 2.7 percent from the level of a year ago.
Tuesday, March 25, 2008
Economic News Calendar from US nextweek
Tuesday, March 25, 2008
10:00 AM Consumer Confidence (The Conference Board)
Consumer expectations fell sharply in February. Then jobs declined for a second straight month. What was the impact on consumer attitudes?
Wednesday, March 26, 2008
8:30 AM Orders for Durable Goods (Bureau of the Census)
Orders, excluding transportation, have been very slow. Even if these orders increased by 1 percent in February, the up and down pattern would still leave "core" orders well below the level in December. This pattern could continue through the summer. And that means not enough new orders to sustain more than minimal increases in total industrial production.
Thursday, March 27, 2008
8:30 AM Gross Domestic Product & Corporate Profits (4Q — 2007) (Bureau of Economic Analysis)
There is not likely to be much revision to the estimate of a very weak 0.6 percent rise in GDP in the final quarter of last year. Growth is probably not much stronger in the first quarter and could be just as anemic in the second quarter.
10:00 AM Help-Wanted Advertising Index (The Conference Board)
Labor market indicators have been reflecting a very slow pace in hiring (below 50,000 jobs). Did any of this change in the latest survey period?
Friday, March 28, 2008
8:30 AM Personal Income and Outlays (Bureau of Economic Analysis)
Look for personal income to have risen a little faster (0.3-to-0.4 percent) than spending (perhaps no more than 0.2 percent). This is an important relationship. Nervous consumers are increasing spending more slowly than income. That won't change until consumer expectations perk up - certainly not before the summer at the earliest.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3352
10:00 AM Consumer Confidence (The Conference Board)
Consumer expectations fell sharply in February. Then jobs declined for a second straight month. What was the impact on consumer attitudes?
Wednesday, March 26, 2008
8:30 AM Orders for Durable Goods (Bureau of the Census)
Orders, excluding transportation, have been very slow. Even if these orders increased by 1 percent in February, the up and down pattern would still leave "core" orders well below the level in December. This pattern could continue through the summer. And that means not enough new orders to sustain more than minimal increases in total industrial production.
Thursday, March 27, 2008
8:30 AM Gross Domestic Product & Corporate Profits (4Q — 2007) (Bureau of Economic Analysis)
There is not likely to be much revision to the estimate of a very weak 0.6 percent rise in GDP in the final quarter of last year. Growth is probably not much stronger in the first quarter and could be just as anemic in the second quarter.
10:00 AM Help-Wanted Advertising Index (The Conference Board)
Labor market indicators have been reflecting a very slow pace in hiring (below 50,000 jobs). Did any of this change in the latest survey period?
Friday, March 28, 2008
8:30 AM Personal Income and Outlays (Bureau of Economic Analysis)
Look for personal income to have risen a little faster (0.3-to-0.4 percent) than spending (perhaps no more than 0.2 percent). This is an important relationship. Nervous consumers are increasing spending more slowly than income. That won't change until consumer expectations perk up - certainly not before the summer at the earliest.
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=3352
Consumer confidence dips further in March 2008
According to The Conference Board, a business-backed research group, Consumer Confidence Index plunged to 64.5 in March from a revised 76.4 in February.
The Consumer Confidence Index has been weakening since July.
Consumer confidence is an important indicator to forecast outlook for the economy because lower consumer confidence tends to result in lower consumer buying, which is a drag on the economy.
The last low of the index the was 61.4 in March 2003, just ahead of the U.S. invasion of Iraq.
The survey by the New York-based Conference Board is based on a sample of 5,000 U.S. households.
Visit for more details
http://news.yahoo.com/s/ap/20080325/ap_on_bi_ge/economy
http://www.conference-board.org/economics/ConsumerConfidence.cfm
The Consumer Confidence Index has been weakening since July.
Consumer confidence is an important indicator to forecast outlook for the economy because lower consumer confidence tends to result in lower consumer buying, which is a drag on the economy.
The last low of the index the was 61.4 in March 2003, just ahead of the U.S. invasion of Iraq.
The survey by the New York-based Conference Board is based on a sample of 5,000 U.S. households.
Visit for more details
http://news.yahoo.com/s/ap/20080325/ap_on_bi_ge/economy
http://www.conference-board.org/economics/ConsumerConfidence.cfm
Sunday, March 9, 2008
We’re in a Recession Now – or Will Be within Six Months
March 06, 2008
Most Senior Executives Say We’re in a Recession Now – or Will Be within Six Months
With Few Exceptions, Senior Executives Say Their Companies Will be Unable to Avoid the Effects of the Recession, According to Boston Consulting Group Survey
Executives Concur that Recession Could Provide Opportunities, Especially for Market Share Gains – But Findings Suggest Companies Aren’t Taking the Right Steps to Capture Opportunities
CHICAGO--(BUSINESS WIRE)
Most U.S. business leaders believe the economy is in a recession now, or that one is inevitable within six months. That’s according to a survey conducted by The Boston Consulting Group (BCG) of 101 senior decision makers at U.S. companies with at least $500 million in annual revenues.
Almost every executive (94.9%) who said that a recession is likely believes his or her company will not be able to avoid the effects of the recession.
Companies Already Feeling Recession Squeeze
A total of 53.4% of executives believe that we’re in a recession now (37.6%), or that we will be within six months (15.8%). While the majority (71.2%) of those who believe we’re in or near recession say they base their view in part on macro-economic indicators, they’re also feeling the effects in their businesses: 55.9% say their view is based in part on a slowdown in sales, and 30.5% say it’s based in part on a slowdown in payments to their companies.
Going into the Recession With the Right Perspective
“We believe companies should approach signs of a recession as an opportunity – to prepare. Downturns magnify relative strengths and weaknesses, so companies that gird themselves intelligently can leverage a change in the dynamics of an industry – something that always happens in a recession – so that it works in their favor,” said Hal Sirkin, global leader of BCG’s Operations practice, which spearheaded the research.
“In the last recession, 30% of the companies that had been among the top 10 players in their sectors dropped off that list. So, viewed the right way, a downturn presents a strategic opportunity to leapfrog the competition, rather than simply posing a threat,” he added.
Recession Trap vs. Recession Opportunity
Indeed, most executives – 57.6% – said the recession will present opportunities (though 42.4% said it won’t). Of those who said it will, 64.7% said the recession will lead to chances for market share gains; 47.1% said it will be an opportunity to implement changes with less internal resistance; and 29.4% said it will provide M&A opportunities.
But Companies that Believe They’re Prepared May Still Fall Into the Recession Trap
Nearly three-quarters (74.5%) of executives say their companies have taken measures to prepare for the downturn, and 81.3% say they’re at least somewhat confident – 23.7% are very confident – that their company is better prepared than competitors.
“Unfortunately, many of these companies are probably less prepared than they believe – and headed for the recession trap. Based on our research, most of the measures these companies say they’re taking – 80% of the steps, in fact – are conventional and related to cost cutting,” said Sirkin, a Chicago-based BCG senior partner. “By mainly focusing on cost reduction, they’re not taking advantage of the opportunities a recession can provide. What they need to do is pull out all the stops now so they can move ahead of their competitors soon and be well positioned when business softens further.”
The Right Steps to Being Prepared
Mr. Sirkin suggests that companies should begin immediately to determine and measure their risk levels in a downturn; sharpen their “downturn radars” by setting up early warning systems that look for danger and opportunity; “get in shape” by doing things like building collaborative partnerships, licensing agreements and outsourcing relationships that reduce risk, keep costs variable and lead to new opportunities; think and act counter-cyclically by taking such steps as giving more service to profitable customers or target accounts and increasing marketing and R&D investments; streamline supply chains; free working capital to reduce debt and interest expense; and get everyone involved in making the most of the downturn by creating a “we’re all in this together” environment.
“In a recession, everyone feels short-term pain. But companies that successfully approach a recession as an opportunity have the potential to realize long-term gain,” said Sirkin.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more information, please visit www.bcg.com.
About the Survey
The Boston Consulting Group commissioned an online survey, conducted by Chicago-based Research Pros Inc., of 101 corporate decision makers at U.S. companies with over $500 million in revenues. About 80% of the companies had revenues over $1 billion. All respondents described themselves as having a position at their company in which they make decisions affecting the overall direction of the company. The survey was conducted February 19-21, 2008.
Contacts
Sommerfield Communications, Inc.
Adria Greenberg, 212-255-8386
adria@sommerfield.com
Most Senior Executives Say We’re in a Recession Now – or Will Be within Six Months
With Few Exceptions, Senior Executives Say Their Companies Will be Unable to Avoid the Effects of the Recession, According to Boston Consulting Group Survey
Executives Concur that Recession Could Provide Opportunities, Especially for Market Share Gains – But Findings Suggest Companies Aren’t Taking the Right Steps to Capture Opportunities
CHICAGO--(BUSINESS WIRE)
Most U.S. business leaders believe the economy is in a recession now, or that one is inevitable within six months. That’s according to a survey conducted by The Boston Consulting Group (BCG) of 101 senior decision makers at U.S. companies with at least $500 million in annual revenues.
Almost every executive (94.9%) who said that a recession is likely believes his or her company will not be able to avoid the effects of the recession.
Companies Already Feeling Recession Squeeze
A total of 53.4% of executives believe that we’re in a recession now (37.6%), or that we will be within six months (15.8%). While the majority (71.2%) of those who believe we’re in or near recession say they base their view in part on macro-economic indicators, they’re also feeling the effects in their businesses: 55.9% say their view is based in part on a slowdown in sales, and 30.5% say it’s based in part on a slowdown in payments to their companies.
Going into the Recession With the Right Perspective
“We believe companies should approach signs of a recession as an opportunity – to prepare. Downturns magnify relative strengths and weaknesses, so companies that gird themselves intelligently can leverage a change in the dynamics of an industry – something that always happens in a recession – so that it works in their favor,” said Hal Sirkin, global leader of BCG’s Operations practice, which spearheaded the research.
“In the last recession, 30% of the companies that had been among the top 10 players in their sectors dropped off that list. So, viewed the right way, a downturn presents a strategic opportunity to leapfrog the competition, rather than simply posing a threat,” he added.
Recession Trap vs. Recession Opportunity
Indeed, most executives – 57.6% – said the recession will present opportunities (though 42.4% said it won’t). Of those who said it will, 64.7% said the recession will lead to chances for market share gains; 47.1% said it will be an opportunity to implement changes with less internal resistance; and 29.4% said it will provide M&A opportunities.
But Companies that Believe They’re Prepared May Still Fall Into the Recession Trap
Nearly three-quarters (74.5%) of executives say their companies have taken measures to prepare for the downturn, and 81.3% say they’re at least somewhat confident – 23.7% are very confident – that their company is better prepared than competitors.
“Unfortunately, many of these companies are probably less prepared than they believe – and headed for the recession trap. Based on our research, most of the measures these companies say they’re taking – 80% of the steps, in fact – are conventional and related to cost cutting,” said Sirkin, a Chicago-based BCG senior partner. “By mainly focusing on cost reduction, they’re not taking advantage of the opportunities a recession can provide. What they need to do is pull out all the stops now so they can move ahead of their competitors soon and be well positioned when business softens further.”
The Right Steps to Being Prepared
Mr. Sirkin suggests that companies should begin immediately to determine and measure their risk levels in a downturn; sharpen their “downturn radars” by setting up early warning systems that look for danger and opportunity; “get in shape” by doing things like building collaborative partnerships, licensing agreements and outsourcing relationships that reduce risk, keep costs variable and lead to new opportunities; think and act counter-cyclically by taking such steps as giving more service to profitable customers or target accounts and increasing marketing and R&D investments; streamline supply chains; free working capital to reduce debt and interest expense; and get everyone involved in making the most of the downturn by creating a “we’re all in this together” environment.
“In a recession, everyone feels short-term pain. But companies that successfully approach a recession as an opportunity have the potential to realize long-term gain,” said Sirkin.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 66 offices in 38 countries. For more information, please visit www.bcg.com.
About the Survey
The Boston Consulting Group commissioned an online survey, conducted by Chicago-based Research Pros Inc., of 101 corporate decision makers at U.S. companies with over $500 million in revenues. About 80% of the companies had revenues over $1 billion. All respondents described themselves as having a position at their company in which they make decisions affecting the overall direction of the company. The survey was conducted February 19-21, 2008.
Contacts
Sommerfield Communications, Inc.
Adria Greenberg, 212-255-8386
adria@sommerfield.com
Saturday, March 8, 2008
US Government Assures People
Taking Responsible Action To Keep Our Economy Growing
Administration Continues Strong Steps To Address Economic Uncertainties, Help Struggling Homeowners
WASHINGTON--(BUSINESS WIRE)
March 07, 2008
Today, the Bureau of Labor Statistics released new jobs figures for February. The unemployment rate decreased to 4.8 percent, below the averages for the past three decades, but nonfarm payroll employment decreased by 63,000 jobs. Our economy has added about 860,000 jobs over the last 12 months – an average of 72,000 jobs per month – and more than 8.1 million since August 2003.
The U.S. economy is structurally sound for the long term, but growth has slowed. Real GDP growth slowed to an annual rate of 0.6 percent in the fourth quarter of last year. While that rate of growth was disappointing, it followed a strong pace of growth in the second and third quarters. Both the Administration and private-sector forecasters still project that growth will continue in 2008, albeit at a somewhat slower pace than in 2007.
The President and his Administration are taking action to address economic uncertainties and to keep our economy growing.
--
In February 2008, President Bush signed into law an economic growth package that will protect the health of our economy by putting money back into the hands of American workers and businesses. This growth package meets the criteria the President laid out in January - it amounts to more than $152 billion, or about one percent of GDP, provides tax rebates to more than 130 million American households, and offers temporary tax incentives for businesses to invest in their companies and create jobs this year.
--
Treasury Secretary Henry Paulson is working to ensure that Americans receive their rebates as quickly as possible. This week, the Treasury Department began sending out letters alerting people that they may be eligible to receive up to $600 for individuals and $1,200 for couples. Eligible families would also receive an additional $300 per child. These rebate payments are anticipated to start being sent out in the second week of May.
As The Housing Market Transitions, The Administration Is Helping Responsible Homeowners Across America Through A Series Of Targeted Actions
Treasury Secretary Paulson and Housing and Urban Development Secretary Alphonso Jackson are leading an aggressive plan to help struggling homeowners refinance their mortgages and make the financial adjustments necessary to get through this difficult time.
Secretaries Paulson and Jackson facilitated creation of the private-sector HOPE NOW Alliance, which has developed multiple strategies to help distressed homeowners. HOPE NOW is a cooperative effort among mortgage counselors, servicers, investors, and lenders to maximize outreach efforts to struggling homeowners in distress and to help homeowners refinance into a new mortgage or receive a modification. HOPE NOW membership now covers over 90 percent of the subprime mortgage market.
In February, HOPE NOW announced the new Project Lifeline initiative, which will help more Americans keep their homes by giving servicers a new tool to reach out to seriously delinquent homeowners. Project Lifeline offers, where appropriate, to "pause" the foreclosure process for 30 days while other longer-term solutions are explored.
This week, HOPE NOW announced that, since July, more than one million homeowners have been helped with a workout – either a loan modification or a repayment plan. Of these, more than 638,000 were for subprime borrowers.
Over the latest half year, the Federal Housing Administration (FHA) helped more than 100,000 families refinance their homes. In August, the President and his Administration launched a new initiative at the Federal Housing Administration called FHASecure. FHASecure expands the FHA's ability to offer refinancing by giving it the flexibility to work with homeowners who have good credit histories but cannot afford their current payments. FHA expects this program to help more than 300,000 families in total by the end of the year. In addition, hundreds of thousands of other homeowners worked out their own refinancings with private lenders over the latest half year.
In December, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which will help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages. This Act created a three-year window for homeowners to refinance their mortgage and pay no Federal taxes on any debt forgiveness they receive.
Congress Must Also Take Action By Passing Responsible Legislation That Helps Homeowners – Without Bailing Out Speculators And Unscrupulous Lenders
The President remains deeply concerned about the housing issue and strongly believes that government assistance must be responsible. The President will not support legislation, like the bill recently considered in the Senate that would do more to bail out lenders and speculators than to help American families keep their homes. This measure would actually prolong the time it takes for the housing market to adjust and recover, and it would lead to higher interest rates.
President Bush continues to call on Congress to quickly pass responsible legislation modernizing the Federal Housing Administration. A modernized FHA that is granted appropriate pricing flexibility could help thousands of homeowners by the end of this year, and passage of this bill is the appropriate next step to help bring stability to the housing market for years to come. The President first sent his FHA modernization bill to the Hill in April 2006 – now is the time for Congress to act.
Congress should also act to strengthen the regulation of Freddie Mac and Fannie Mae to ensure they are adequately capitalized and focus on their important housing mission.
The President Calls On Congress To Help Sustain Economic Growth By Approving Pending Free Trade Agreements
Approving the free trade agreements with Colombia, Panama, and South Korea will contribute to U.S. economic growth. Exports now account for a larger share of our GDP than at any other time in history, and jobs supported by goods exports pay wages 13 to 18 percent higher than the national average.
The U.S.-Colombia free trade agreement will level the playing field, helping U.S. companies that export to Colombia increase sales and compete more effectively in the Colombian market and strengthening our national security. Over 90 percent of U.S. imports from Colombia now enter our country duty-free, and this agreement will provide U.S. companies and farmers with duty-free access to the Colombian market. Once implemented, the agreement will immediately eliminate tariffs on more than 80 percent of American exports of industrial and consumer goods, and it will provide significant new duty-free access for American agricultural commodities.
The U.S.-Colombia free trade agreement will also strengthen our national security by sending a clear message to a key democratic ally. This trade agreement will bring new economic opportunities to Colombia's citizens and will reinforce democracy by fighting corruption, increasing transparency, and fostering accountability and rule of law.
The Korea – U.S. (KORUS) FTA is the most commercially significant FTA the United States has concluded in the past 15 years. This agreement will open a growing market of 49 million consumers to the full range of U.S. goods and services. More broadly, the KORUS FTA is a powerful symbol of the United States-South Korea partnership, strengthening our relations with one of our most important and reliable allies in Asia.
Expanding trade expands prosperity, but the Federal government has a responsibility to help those who are adversely impacted by trade. The President has asked Congress to reauthorize and reform trade adjustment assistance, so we can help displaced workers learn new skills and find new jobs.
President Bush Continues To Call On Congress To Further Reduce Economic Uncertainty By Making His Tax Relief Permanent
President Bush believes the most important action to ensure the long-term health of our economy is to make sure the tax relief that is now in place is made permanent. The 2001 and 2003 tax cuts are set to expire in less than three years. If Congress allows that to happen, 116 million taxpayers will see their taxes go up by $1,800 on average, and we will see an end to many of the measures that have helped our economy grow – including the 10 percent individual income tax bracket, reductions in the marriage penalty, the expansion of the child tax credit, and reduced rates on regular income, capital gains, and dividends.
Administration Continues Strong Steps To Address Economic Uncertainties, Help Struggling Homeowners
WASHINGTON--(BUSINESS WIRE)
March 07, 2008
Today, the Bureau of Labor Statistics released new jobs figures for February. The unemployment rate decreased to 4.8 percent, below the averages for the past three decades, but nonfarm payroll employment decreased by 63,000 jobs. Our economy has added about 860,000 jobs over the last 12 months – an average of 72,000 jobs per month – and more than 8.1 million since August 2003.
The U.S. economy is structurally sound for the long term, but growth has slowed. Real GDP growth slowed to an annual rate of 0.6 percent in the fourth quarter of last year. While that rate of growth was disappointing, it followed a strong pace of growth in the second and third quarters. Both the Administration and private-sector forecasters still project that growth will continue in 2008, albeit at a somewhat slower pace than in 2007.
The President and his Administration are taking action to address economic uncertainties and to keep our economy growing.
--
In February 2008, President Bush signed into law an economic growth package that will protect the health of our economy by putting money back into the hands of American workers and businesses. This growth package meets the criteria the President laid out in January - it amounts to more than $152 billion, or about one percent of GDP, provides tax rebates to more than 130 million American households, and offers temporary tax incentives for businesses to invest in their companies and create jobs this year.
--
Treasury Secretary Henry Paulson is working to ensure that Americans receive their rebates as quickly as possible. This week, the Treasury Department began sending out letters alerting people that they may be eligible to receive up to $600 for individuals and $1,200 for couples. Eligible families would also receive an additional $300 per child. These rebate payments are anticipated to start being sent out in the second week of May.
As The Housing Market Transitions, The Administration Is Helping Responsible Homeowners Across America Through A Series Of Targeted Actions
Treasury Secretary Paulson and Housing and Urban Development Secretary Alphonso Jackson are leading an aggressive plan to help struggling homeowners refinance their mortgages and make the financial adjustments necessary to get through this difficult time.
Secretaries Paulson and Jackson facilitated creation of the private-sector HOPE NOW Alliance, which has developed multiple strategies to help distressed homeowners. HOPE NOW is a cooperative effort among mortgage counselors, servicers, investors, and lenders to maximize outreach efforts to struggling homeowners in distress and to help homeowners refinance into a new mortgage or receive a modification. HOPE NOW membership now covers over 90 percent of the subprime mortgage market.
In February, HOPE NOW announced the new Project Lifeline initiative, which will help more Americans keep their homes by giving servicers a new tool to reach out to seriously delinquent homeowners. Project Lifeline offers, where appropriate, to "pause" the foreclosure process for 30 days while other longer-term solutions are explored.
This week, HOPE NOW announced that, since July, more than one million homeowners have been helped with a workout – either a loan modification or a repayment plan. Of these, more than 638,000 were for subprime borrowers.
Over the latest half year, the Federal Housing Administration (FHA) helped more than 100,000 families refinance their homes. In August, the President and his Administration launched a new initiative at the Federal Housing Administration called FHASecure. FHASecure expands the FHA's ability to offer refinancing by giving it the flexibility to work with homeowners who have good credit histories but cannot afford their current payments. FHA expects this program to help more than 300,000 families in total by the end of the year. In addition, hundreds of thousands of other homeowners worked out their own refinancings with private lenders over the latest half year.
In December, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which will help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages. This Act created a three-year window for homeowners to refinance their mortgage and pay no Federal taxes on any debt forgiveness they receive.
Congress Must Also Take Action By Passing Responsible Legislation That Helps Homeowners – Without Bailing Out Speculators And Unscrupulous Lenders
The President remains deeply concerned about the housing issue and strongly believes that government assistance must be responsible. The President will not support legislation, like the bill recently considered in the Senate that would do more to bail out lenders and speculators than to help American families keep their homes. This measure would actually prolong the time it takes for the housing market to adjust and recover, and it would lead to higher interest rates.
President Bush continues to call on Congress to quickly pass responsible legislation modernizing the Federal Housing Administration. A modernized FHA that is granted appropriate pricing flexibility could help thousands of homeowners by the end of this year, and passage of this bill is the appropriate next step to help bring stability to the housing market for years to come. The President first sent his FHA modernization bill to the Hill in April 2006 – now is the time for Congress to act.
Congress should also act to strengthen the regulation of Freddie Mac and Fannie Mae to ensure they are adequately capitalized and focus on their important housing mission.
The President Calls On Congress To Help Sustain Economic Growth By Approving Pending Free Trade Agreements
Approving the free trade agreements with Colombia, Panama, and South Korea will contribute to U.S. economic growth. Exports now account for a larger share of our GDP than at any other time in history, and jobs supported by goods exports pay wages 13 to 18 percent higher than the national average.
The U.S.-Colombia free trade agreement will level the playing field, helping U.S. companies that export to Colombia increase sales and compete more effectively in the Colombian market and strengthening our national security. Over 90 percent of U.S. imports from Colombia now enter our country duty-free, and this agreement will provide U.S. companies and farmers with duty-free access to the Colombian market. Once implemented, the agreement will immediately eliminate tariffs on more than 80 percent of American exports of industrial and consumer goods, and it will provide significant new duty-free access for American agricultural commodities.
The U.S.-Colombia free trade agreement will also strengthen our national security by sending a clear message to a key democratic ally. This trade agreement will bring new economic opportunities to Colombia's citizens and will reinforce democracy by fighting corruption, increasing transparency, and fostering accountability and rule of law.
The Korea – U.S. (KORUS) FTA is the most commercially significant FTA the United States has concluded in the past 15 years. This agreement will open a growing market of 49 million consumers to the full range of U.S. goods and services. More broadly, the KORUS FTA is a powerful symbol of the United States-South Korea partnership, strengthening our relations with one of our most important and reliable allies in Asia.
Expanding trade expands prosperity, but the Federal government has a responsibility to help those who are adversely impacted by trade. The President has asked Congress to reauthorize and reform trade adjustment assistance, so we can help displaced workers learn new skills and find new jobs.
President Bush Continues To Call On Congress To Further Reduce Economic Uncertainty By Making His Tax Relief Permanent
President Bush believes the most important action to ensure the long-term health of our economy is to make sure the tax relief that is now in place is made permanent. The 2001 and 2003 tax cuts are set to expire in less than three years. If Congress allows that to happen, 116 million taxpayers will see their taxes go up by $1,800 on average, and we will see an end to many of the measures that have helped our economy grow – including the 10 percent individual income tax bracket, reductions in the marriage penalty, the expansion of the child tax credit, and reduced rates on regular income, capital gains, and dividends.
Friday, March 7, 2008
Consumer Confidence at Lowest Since 2002
Friday March 7
According to the RBC Cash Index, confidence sank to a mark of 33.1 in early March, down from 48.5 in February. The new reading was the worst since the index began in 2002 and surpassed the previous low reached in February.
Last March, confidence stood at 92.3. The index is based on results of the international polling firm Ipsos.
http://biz.yahoo.com/ap/080307/consumer_confidence.html
According to the RBC Cash Index, confidence sank to a mark of 33.1 in early March, down from 48.5 in February. The new reading was the worst since the index began in 2002 and surpassed the previous low reached in February.
Last March, confidence stood at 92.3. The index is based on results of the international polling firm Ipsos.
http://biz.yahoo.com/ap/080307/consumer_confidence.html
Thursday, February 28, 2008
Bush, Fed Chief See No Recession Ahead
Feb 28, 7:16 PM EST
Bush, Fed Chief See No Recession Ahead
By JEANNINE AVERSA
AP Economics Writer
WASHINGTON (AP) -- The economy is in turmoil, yet President Bush and Federal Reserve chief Ben Bernanke say the country will weather the storm. Neither sees a recession on the horizon.
Both Bush and Bernanke are on the front lines of the government's efforts to right an economy that increasing numbers of economists fear is on the verge of its first recession since 2001, if it hasn't already fallen into one.
For more
http://hosted.ap.org/dynamic/stories/B/BUSH_BERNANKE?SITE=IACED&SECTION=HOME&TEMPLATE=DEFAULT
Bush, Fed Chief See No Recession Ahead
By JEANNINE AVERSA
AP Economics Writer
WASHINGTON (AP) -- The economy is in turmoil, yet President Bush and Federal Reserve chief Ben Bernanke say the country will weather the storm. Neither sees a recession on the horizon.
Both Bush and Bernanke are on the front lines of the government's efforts to right an economy that increasing numbers of economists fear is on the verge of its first recession since 2001, if it hasn't already fallen into one.
For more
http://hosted.ap.org/dynamic/stories/B/BUSH_BERNANKE?SITE=IACED&SECTION=HOME&TEMPLATE=DEFAULT
Wednesday, February 27, 2008
Feb 27, 2008
Fed Chief Signals Another Rate Cut
By JEANNINE AVERSA
AP Economics Writer
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Congress that the nation is in for a period of sluggish business growth and sent a fresh signal Wednesday that interest rates will again be lowered to steady the teetering economy.
"The economic situation has become distinctly less favorable" since the summer, the Fed chief told the House Financial Services Committee.
http://hosted.ap.org/dynamic/stories/B/BERNANKE_CONGRESS?SITE=IACED&SECTION=HOME&TEMPLATE=DEFAULT
Fed Chief Signals Another Rate Cut
By JEANNINE AVERSA
AP Economics Writer
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Congress that the nation is in for a period of sluggish business growth and sent a fresh signal Wednesday that interest rates will again be lowered to steady the teetering economy.
"The economic situation has become distinctly less favorable" since the summer, the Fed chief told the House Financial Services Committee.
http://hosted.ap.org/dynamic/stories/B/BERNANKE_CONGRESS?SITE=IACED&SECTION=HOME&TEMPLATE=DEFAULT
Monday, February 25, 2008
New subprime losses main risk to world growth - IMF
Feb 26, 2008
OUAGADOUGOU, Burkina Faso (Reuters) - World economic growth could miss the International Monetary Fund's forecast of 4.1 percent this year if U.S. and European banks disclose more major losses on the subprime market, the head of the IMF said on Monday.
OUAGADOUGOU, Burkina Faso (Reuters) - World economic growth could miss the International Monetary Fund's forecast of 4.1 percent this year if U.S. and European banks disclose more major losses on the subprime market, the head of the IMF said on Monday.
Bankers’ outlook on economy worst in five years 2008 February
February 25, 2008
Bankers’ outlook on economy worst in five years
Majority don’t expect their local real estate markets to hit bottom in the next six months
CHICAGO--(BUSINESS WIRE)--More than half (56%) of the bank executives questioned in a recent national survey are pessimistic about the state of the national economy for 2008, while less than one out of ten bankers are optimistic about the economy. The results, part of the 15th Survey of Bank Executives, a Grant Thornton LLP study conducted in association with Bank Director magazine, show the highest pessimism and lowest optimism for the economy in the question’s five year history.
In addition to being pessimistic on the economy, bankers are also the most pessimistic they’ve ever been during the course of our survey on their outlook for the business of banking. Fifty-four percent report that they are pessimistic, and only 10 percent report that they are optimistic about the business of banking for the coming year.
“Clearly, bankers believe that there is more fallout ahead for the national economy,” said John Ziegelbauer, managing partner of Grant Thornton LLP’s financial institutions practice. “And based on their outlook for their local real estate markets, many of them see more difficult times are ahead. The historic write-offs we have seen in the past few weeks only confirm that bankers were correct in their prognostications.”
Other findings from the survey:
64 percent of bank executives do not anticipate their local real estate market to hit bottom for six months or more.
31 percent of bankers agree that the Federal Reserve System is doing a good job in managing the economy; 21 percent do not agree that the Fed is doing a good job.
For a copy of the survey, which will be available the week of April 21, please contact Grant Thornton’s Office of Financial Services at 877.835.1723 or FinancialServices@gt.com.
About the survey
Grant Thornton’s Survey of Bank Executives provides a snapshot of the banking world, presenting a compilation of opinions of industry leaders on the current state and future direction of the industry. In late November 2007, Bank Director magazine mailed questionnaires to a national sample of 3,000 chief executive officers and other senior officers of banks and savings institutions. A total of 356 completed questionnaires were returned for a response rate of 11.9 percent.
Sixty-one percent of the respondents report assets of less than $500 million, with 38 percent reporting assets greater than $500 million. The executives defined the community they primarily serve as suburban (46%), rural (33%) or urban (22%). More than one-third (35%) are publicly held, 53 percent are private corporations and 12 percent have mutual charters.
About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International, one of the six global accounting, tax and business advisory organizations. Through member firms in more than 110 countries, including 51 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.
Contacts
Grant Thornton LLP
Kara McFarland
T 312.602.8469
E Kara.McFarland@gt.com
Bankers’ outlook on economy worst in five years
Majority don’t expect their local real estate markets to hit bottom in the next six months
CHICAGO--(BUSINESS WIRE)--More than half (56%) of the bank executives questioned in a recent national survey are pessimistic about the state of the national economy for 2008, while less than one out of ten bankers are optimistic about the economy. The results, part of the 15th Survey of Bank Executives, a Grant Thornton LLP study conducted in association with Bank Director magazine, show the highest pessimism and lowest optimism for the economy in the question’s five year history.
In addition to being pessimistic on the economy, bankers are also the most pessimistic they’ve ever been during the course of our survey on their outlook for the business of banking. Fifty-four percent report that they are pessimistic, and only 10 percent report that they are optimistic about the business of banking for the coming year.
“Clearly, bankers believe that there is more fallout ahead for the national economy,” said John Ziegelbauer, managing partner of Grant Thornton LLP’s financial institutions practice. “And based on their outlook for their local real estate markets, many of them see more difficult times are ahead. The historic write-offs we have seen in the past few weeks only confirm that bankers were correct in their prognostications.”
Other findings from the survey:
64 percent of bank executives do not anticipate their local real estate market to hit bottom for six months or more.
31 percent of bankers agree that the Federal Reserve System is doing a good job in managing the economy; 21 percent do not agree that the Fed is doing a good job.
For a copy of the survey, which will be available the week of April 21, please contact Grant Thornton’s Office of Financial Services at 877.835.1723 or FinancialServices@gt.com.
About the survey
Grant Thornton’s Survey of Bank Executives provides a snapshot of the banking world, presenting a compilation of opinions of industry leaders on the current state and future direction of the industry. In late November 2007, Bank Director magazine mailed questionnaires to a national sample of 3,000 chief executive officers and other senior officers of banks and savings institutions. A total of 356 completed questionnaires were returned for a response rate of 11.9 percent.
Sixty-one percent of the respondents report assets of less than $500 million, with 38 percent reporting assets greater than $500 million. The executives defined the community they primarily serve as suburban (46%), rural (33%) or urban (22%). More than one-third (35%) are publicly held, 53 percent are private corporations and 12 percent have mutual charters.
About Grant Thornton LLP
Grant Thornton LLP is the U.S. member firm of Grant Thornton International, one of the six global accounting, tax and business advisory organizations. Through member firms in more than 110 countries, including 51 offices in the United States, the partners and employees of Grant Thornton member firms provide personalized attention and the highest quality service to public and private clients around the globe. Visit Grant Thornton LLP at www.GrantThornton.com.
Contacts
Grant Thornton LLP
Kara McFarland
T 312.602.8469
E Kara.McFarland@gt.com
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