Larry Summers: Worst Not Over

 

Grim news from President Obama’s top economic adviser: “I don’t think the worst is over,” Larry Summers tells the Financial Times. “It’s very likely that more jobs will be lost. It would not be surprising if GDP has not yet reached its low. What does appear to be true is that the sense of panic in the markets and freefall in the economy has subsided and one does not have the sense of a situation as out of control as a few months ago.” In the long and interesting interview, Summers lays out his vision for what the American economy will become: “more export oriented” and “less consumption-oriented”; “more environmentally oriented” and “less energy-production-oriented”; “more bio- and software- and civil-engineering-oriented" and "less financial-engineering-oriented”; and, finally, “more middle-class-oriented” and “less oriented to income growth that is disproportionate towards a very small share of the population.”

 

Yalor...I heard about the package thing you mentioned and more Chinese companies are asking for RMB transaction.

But 2 yen in one day is the steepest since Dec.  Gold also fell and Oil is now 60 again....the magic number.

I thought gold and oil should move in opposite direct of USD.....We should observe what is happening in the mrkt ?

Jul 8, 2009, 5:01 p.m. EST

Alcoa posts third straight loss, tops targets

SAN FRANCISCO (MarketWatch) - Alcoa Inc. said Wednesday it swung to a second-quarter loss as aluminum prices plunged from a year ago and as top customers continued to grapple with the persistent economic recession.

Alcoa /quotes/comstock/13*!aa/quotes/nls/aa (AA 9.85, +0.39, +4.12%) shares rallied 7% to $10.08 in extended trading following the upbeat report. Before the evening rally, the stock close up 5 cents at $9.46 -- a 71% drop from a year ago and 16% retreat since the beginning of 2009.

Alcoa, the first of the Dow industrials to report this earnings season, posted a loss of $454 million, or 47 cents a share, vs. a profit of 66 cents a share, or $546 million, a year ago, when aluminum prices were just about double where they currently stand.

Because of rumours of the second bailout package? This may dilute the dollar further.

There was no recovery to start with...

The problem is people take this rebound as the usual recovery a la the business cycle...

But the truth is, this crisis is unprecedented... arising out of a systemic malady... 

Thus, recovery may be far off yet...

Most local counters are have already showed obvious signs of tanking...

dealer0168      ( Date: 09-Jul-2009 00:15) Posted: Emm, ya ...quite agreed. Anyway, recovery will still be there but is a very slow one...............   iPunter      ( Date: 09-Jul-2009 00:12) Posted: He's done his best already... But there's a limit to what can be humanly done... against the laws of nature (the financial markets)...