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Linkmaster Hero Username: Linkmaster Post Number: 15641 Registered: 02-2008 Posted From: 205.172.134.23 Rating: N/A |
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Ashton Side Hero Username: Ashton Post Number: 6603 Registered: 05-2008 Posted From: 66.90.104.94 Rating: N/A |
http://www.dailymail.co.uk/news/worldnews/article-1311679/Fi nancial-gloom-US-economists-warn-financial-apocalypse--signs -growth.html U.S. observers have given dire warnings that the world's number one economy is on the brink of collapse. High rates of unemployment and a spiraling public deficit have seen economists such as Nouriel Roubini coming forward with predictions of a 'financial apocalypse' in the U.S. Mr Roubini's views have been thrust to the forefront after he predicted the chaos wrought by the subprime mortgage crisis and the collapse of the housing bubble. Boston University professor Laurence Kotlikoff, who warned back in the 1980s of the dangers of a public deficit, lent credence to the gloomy predictions in an International Monetary Fund publication last week. He unveiled a scenario of an economic clash between superpowers the United States and China, which holds more than 843 billion dollars of U.S. Treasury bonds. But the warnings in the U.S. come at the same time as stocks rose sharply in a sign investors were gaining confidence in the banking sector. New economic reports today show robust growth in the world's second-largest economy, China, which continues to accelerate at a time when economists were expecting it to slow. Strong growth in China is considered vital to a global recovery because if demand remains high there, it will offset sluggish growth in the US where economic expansion is not as strong. New global regulations have also added to confidence in Europe's banks, which have been slower than their U.S. counterparts to bolster reserves. Some major corporate acquisitions were announced, which are often a sign of confidence in an expanding economy. Global regulators agreed to reforms that could help avoid another credit crisis that plagued financial markets worldwide in 2008. Banks will gradually have to increase their reserves to protect against potential losses. The Dow has climbed seven of the past eight days and is up 4.5 per cent in September, which is typically one of the weakest months of the year for the market. Trading volume is also expected to pick up this week as traders return from summer vacations and recent holidays. |