Saturday, January 5, 2008
Stocks dive on meager job gains:WashPost,1/5/08
On page D1: "Fear of consumer spending decline shakes markets: Stocks tumbled after a feeble employment report heightened concern about the outlook for a pillar of the economy - the American consumer." My comment: Consumption sector occupies roughly 2/3 of GNP, American consumers need to pay for higher gas prices plus the military outlay of the government and the federal budget deficit. All happenings have caused awakening of consumers and forsee the bleak picture of the overall economy. Investors are bracing for another year of volatility as the credit squeeze plays out and the economy slows. It is said that the US economy is at the crossroads in 2008. Chinese stock market is up but analysts have warned the investors to watch out for the unexpected volatility as well. My comment: Here is the common ground for two nations to encounter uncertainties in the new year. For the US economy, most folks expect inflationary recession or stagflation. In China,some people fear of the bubble. Both situations mean economic uncertainties affecting all the people of USA and China. Francis Shieh a.k.a. Xie Shihao. Sat.,January 5, 2008.