Quite few weeks before, there was a comment on one of my article about Depression in 2008, which I boldly ruled out. But two weeks back, I have started seeing the D word to swing across many people and I did write an article "Face of Depression in 2008". While I was writing "Face of Depression..." I was one amoung many who believed that 2008 has been fixed by Fed's action moves to make it not like 1930 (Great Depression). But I dont think we are shore yet....
Yet another violent week last week, with General Electric profit miss and weak 2008 outlook battered stocks Friday and put investors on edge. Fallout from losses at General Electric and other factors pointing to a U.S. recession hit global stock markets hard.
The rippling effect of US economy on other foreign nationals started showing up. European stocks dropped for the fifth session in a row as weak corporate results continued to spook investors. Japan's average index lowered around 3% approx. The IMF forecast U.S. economic growth to be 0.5% in 2008 and the downturn is expected to hamper growth in other Western nations. (IMF forecast also noted that India & China will have a slight lower economic impact in 2009).
Finance chiefs from the Group of Seven rich nations did show concern about the credit crisis rippling around the world. (This indeed shows how nations have been inter linked with each other). With exchange rate fluctuations going high .. Euro raised too much against dollar last week. This has raised so much concern amoung as the fear of global economy imbalances may cause prominent issues.
Retail which drives the huge percentage of GDP formula of America, showed very sluggish growth. Which clearly shows the lack of consumer confidence.
At this stage or considering first quater of 2008... with rising oil prices which has hiked commodity prices across the world and the rising food prices, many foreclosures, job losses across the nation - Just bad days, my friends, Just bad days.
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