Katrina Shankle/Sun. Mar. 23, 2008/3:17 p.m./Global Economics
Housing related data is indicating more heartache for the global economy in the wake of the mortgage crisis in the United States. Some analysts are predicting that the worst is over after more interest cuts and the United States Federal Reserve bailing out investment bank Bear Stearns. While many are viewing this as a positive step in the right direction, others are still nervous, particularly at the fact that another bank may be preparing itself to announce more write-downs of bad debt.
United State's economic data is showing thre tale-tell signs of a recession: deterioration in the maufactoring sector, a sagging job market, and a decline in consumer spending.
Not all news is bad, however as the United States is providing solid exports which are offering support and holding off a U.S. led global recession due to the subprime mortgage crisis. Growth in the euro zone is expected to continue.
The housing market is still in dire need of repair. The eight month long turmoil of the financial market can be traced back to the housing market and failing mortgages. Until the housing market gains stabilization, the United States economy as well as the global economy will not be out of the woods.
http://www.iht.com/articles/2008/03/23/business/rtrecon24.php
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