More negative news this week on the economic front prompts more analysts to predict a recession in 2008. Bank of America announced it will rescue Countrywide Financial, the nation’s biggest mortgage lender, in a stock deal for $4.1 billion.
Business Week Ending January 11, 2008 News from the Commerce Department
News from the Labor Department
Stocks fell as investor’s fears rose about growing losses in the financial sector, and more major players prepare to announce they will take a big hit from the subprime mortgage debacle. Merrill Lynch & Co, the nation’s largest brokerage, is expected to suffer around $15 billion in losses from mortgage debt, according to the New York Times, and is currently seeking investors to infuse capital and offset its losses. Merrill, along with Citigroup Inc. and JPMorgan Chase & Co. will report results later next week.
Gold futures spiked to their highest level ever this week, pushed higher by the weak U.S. dollar and rise in oil prices. Gold is once again seen as a safe bet for investors in these times of political and economic insecurity. The closing price for February delivery topped $880 an ounce, up from $878.00 last month.
Problems in the housing and credit industries is wearing on consumer confidence. According to the RBC Cash Index, the confidence index dropped to an all-time low of 56.3 in early January from a reading of 65.9 in December. Consumers are concerned about jobs, energy bills and home foreclosures impacting the health of the economy, as well as their own financial security.
Federal Reserve chair Ben Bernanke himself made it clear that he intends to slash interest rates again as needed to prevent the housing and credit crisis from sending the economy into a downward spiral. With Bernanke being so upfront about his intentions, may analysts expect the Fed will make a bold move when it meets at the end of the month, possibly slicing another one-half percentage point off its key interest rate.
When asked directly about the state of the economy, Bernanke said, “The Federal Reserve is not forecasting a recession.” But they feel the economy will experience ”slow growth.”
Stay tuned for more news on the economy, mortgages, and the new homes real estate industry.
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The Author: Sandra Tuell Website: http://www.newhomes.com About: As an accredited real estate enhancement professional, interior arranger and color specialist, Sandra Tuell's expertise is in helping clients transition to a new home - first by preparing their current homes for resale, and then by creating warm and inviting spaces in their new homes that are uniquely personal. With a passion about all that is pertinent to the design, comfort, livability, and ultimately the marketability of a home, Sandra is excited to share her insights with homeowners who wish to maximize the potential of their homes. As a writer for New Homes Realty, Inc., her focus is to provide practical information and affordable tips that both inspire readers and instill the confidence to try something new. "Our personal spaces can have a profound effect on how we feel," stresses Sandra. "Everyone deserves good design. Creating beautiful interiors has more to do with creativity than money. The whole point is to create a space that makes you feel good...that you feel like coming home to." For the past four years, Sandra has operated her own interior arrangement and home staging company, Roomscapes, servicing clients in Pinellas County, Florida. She received specialized training in interior arrangement, and earned certification in real estate enhancement through Realty Enhancements International. Previously, Sandra worked in the corporate world as a marketing professional, applying her creative energy in a variety of roles including advertising, promotions, special events planning and web content creation. Her current position as a writer for New Homes Realty allows her to bring together her love of design and her educational training as a journalist. "It's really the best of both worlds," says Sandra.
This entry was posted by Sandra Tuell, on Friday, January 11th, 2008 at 12:57 pm and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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