Archive for July, 2008

Greenspan Says Regulator Role Will Undermine Fed’s Credibility

Thursday, July 31st, 2008

In an interview on CNBC, Former Federal Chairman Alan Greenspan warned that if the Federal Reserve is given a role to oversee the financial system it could undermine its credibility. Greenspan said the US is facing a "once in a century crisis." He warned that the U.S. teeters on the brink ...

A Loaf of Bread for Z$200 Billion? Now That’s Inflation

Thursday, July 31st, 2008

Zimbabwe is the latest example of what happens when inflation spirals out of control to the point of hyperinflation. With the highest rate of inflation in the world - about 2.2 million per cent - Zimbabwe last week issued a Z$100 billion note, though still not enough to buy a ...

TSY’s Paulson Says Stimulus Has Helped U.S. Economy

Thursday, July 31st, 2008

Speaking before the Exchequer Club of Washington, U.S. Treasury Secretary Henry Paulson said the stimulus package has supported the economy in the last year. Paulson said market turmoil and energy prices have dragged on the economy, while the labor market has softened... Read More Now

Freddie Mac Doubles Financial Incentives to Servicers Who Help Borrowers Avoid Foreclosure

Thursday, July 31st, 2008

Freddie Mac today told mortgage servicers it was doubling the amount of money it pays for each workout that keeps a delinquent borrower with a Freddie Mac-owned mortgage out of foreclosure. Freddie Mac also announced it will start reimbursing servicers for the cost of door-to-door outreach programs, give servicers more time ...

After Weak U.S. Second-Quarter GDP, Economists Say Worse to Come

Thursday, July 31st, 2008

Economists say the reported 1.9% GDP growth for the second quarter of 2008 was boosted by a 1.5% increase in consumption and a 2.4% gain in net exports. The figure was lower than expectations, however, as inventories saw a sharp reduction. Aside from the headline, the big news came from revisions ...

Chicago Business Barometer Bounces into Growth, Prices at 28-Year High

Thursday, July 31st, 2008

The ISM-Chicago business barometer bounced into growth mode in July following five months of slowdown. The growth was led by advances in production and new orders, even as prices hit a 28-year high and employment remained in contraction for the eighth straight month. Read More Now

GDP Rises 1.9% in Q2, Revisions Include Negative Quarter in Q4 2007

Thursday, July 31st, 2008

The advance U.S. GDP report came in lower than expected for the second quarter of 2008, rising by 1.9% against expectations of 2.3% growth, according to the Bureau of Economic Analysis on Thursday. Revisions showed the U.S. economy shrank 0.2% in the fourth quarter 2007. The negative figure is the first ...

Preview: Second Quarter GDP Expected to Post 2.3% Growth

Wednesday, July 30th, 2008

The consensus forecast expects U.S. GDP growth to come in quite a bit better than the two previous quarters, as exports have surged on the weak dollar and the fiscal stimulus package has provided a boost to consumption. The advance Q2 GDP report is expected to show growth of 2.3% in ...

CIBC’s Rubin Sees U.S. Inflation Hitting 6%

Wednesday, July 30th, 2008

Headline inflation in the United States could be headed as high as 6% before the end of the year, CIBC chief economist Jeff Rubin warns in a forecast published Wednesday. "We haven't seen a 6% CPI inflation rate posted in the U.S. since 1990 and even then only briefly for four ...

Hope Now Alliance Saves 1.9 Million Homes From Foreclosure

Wednesday, July 30th, 2008

Mortgage service providers have staved off the foreclosure of 1.9 million homes in the past year in what has been the largest bailout the housing industry has ever seen, according to Hope Now, the private sector alliance of mortgage service providers, counsellors and investors... Read More Now