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Oh boy! Here we go...LOL
Go to the link for the video.
Posted Sep 15, 2008 01:58pm EDT by Aaron Task in Investing, Recession, Banking
Related: MER, BAC, LEH, ^DJI, ^GSPC, XLF, SPY
The drama on Wall Street is already hitting Main Street U.S.A. in the form of lower stock prices and declining home values. But the situation got even worse over the weekend.
With financial institutions so focused on preserving capital as many fight for survival, "it's going to be much more difficult, if not impossible" for consumer to get a loan now, says Diane Garnick, investment strategist at Invesco.
Given the U.S. economy is driven by consumers, whose spending has been increasingly funded with debt this decade, the inability to get a loan will have profound effects on the U.S. economy. The "credit contraction" that has just begun explains why economist and executives like Bank of America's Ken Lewis are now moving their recovery forecasts to 2010 from 2008 or 2009 previously.
Garnick, whose firm has approximately $500 billion of assets under management, shares these concerns and says the U.S. stock market is far from a bottom as a result.
Related: MER, BAC, LEH, ^DJI, ^GSPC, XLF, SPY
The drama on Wall Street is already hitting Main Street U.S.A. in the form of lower stock prices and declining home values. But the situation got even worse over the weekend.
With financial institutions so focused on preserving capital as many fight for survival, "it's going to be much more difficult, if not impossible" for consumer to get a loan now, says Diane Garnick, investment strategist at Invesco.
Given the U.S. economy is driven by consumers, whose spending has been increasingly funded with debt this decade, the inability to get a loan will have profound effects on the U.S. economy. The "credit contraction" that has just begun explains why economist and executives like Bank of America's Ken Lewis are now moving their recovery forecasts to 2010 from 2008 or 2009 previously.
Garnick, whose firm has approximately $500 billion of assets under management, shares these concerns and says the U.S. stock market is far from a bottom as a result.
Go to the link for the video.
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