Page F7: Slower consumer spending and reduced access to credit- Citigroup and Bank of America,financial giants have reported billions of dollars in write-downs. Wall Street will further dent investor confidence and lead to another broad sell-off. Let us wait and see the coming events.
The recession bell has rung for the US economy," said Stuart Hoffman,chief economist at PNC Financial Services Group.. "The loss of jobs is very widespread." I envisioned such outlook months ago.
World stock funds lost 9.6%; emerging market funds fared worse, falling 11.7%. China region funds dropped a whopping 21.2%.
Funds have tanked so far and we hope the stimulus package might give consumers a shot in the arm since consumption sector occupies 2/3 of GDP.
My comment: Taiwan posted healthy gains and Taiwan's new leader will promote more trading and other economic activities with mainland China. That remains to be seen in the positive scenario. Such happening would have impacts on Sino-American economics as a whole since Taiwan is a part of China officially as proclaimed by US presidents.
Francis Shieh a.k.a. Xie Shihao on Sunday,April 6, 2008 at 2.38 p.m.
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