Thursday, August 4, 2011

Stocks fall, as cracks in the US economy extend - San Bernardino Sun

The Dow Jones industrial average fell more than 500 points Thursday, still a two-week stock prices plummet, which coincided with the Federal Government's last-minute Dodge of a default on the public debt, has a number of bad economic news and ongoing debt crisis in Europe.

"My personal view is that the economy was fact, it was never really as strong as the stock market, as was" Claremont Economist Dwight Johnston said. "And the economy is to work, as it has."

'Working on' can mean, the United States recession will not fall in a double dip, but the pace of economic recovery in the excruciatingly slow pace that became obvious, since the great recession officially in June 2009 ended can remain.

Formerly a private practice as a consultant and commentator with WesCorp Credit Union in San Dimas Johnston now has.

He believes Federal Reserve Chairman Ben Bernanke 2010 had known attempt to stimulate the U.S. economy through a bond purchase policy as a "high sugar" quantitative easing in the speculators to create extra cash to push prices up.

Others credit but a repetition to avoid recession help Bernanke's movement with the US economy.

The Fed has noted recently, it has no plans to implement another round of monetary stimulus and the new focus on deficit reduction in Washington means that Congress is not trying to pump is likely money into the economy.

Thursday's sell-off meant that

Dow Jones worst fall since the fall of 2008 and the ninth steepest decline in the index history. 512.76 Points to lose, the Dow was at 11,383.68 points and the decline in eliminates all gains achieved so far this year.

The Dow Jones measures the average price of the 30 largest companies of the country. Their steep decline on Thursday followed by other sad news from the business world.

Gross domestic product, measure of all were, and produced the United States services grew by only 1.3 per cent in the second quarter of this year the U.S. Department of Commerce reported a week ago.

From May was consumer spending until June for the first time since September 2009.

Another pair reports published this week showed a decline in durable goods orders and slow growth in the service industry.

Not all economic news Council of shopping centers was bad - international on Thursday reported an uptick in the retail - sales but the most obvious indication of economic recovery would be for many, a paycheck.

Bureau of Labor Statistics next job report will come today. The Agency last unemployment result showed US employers added only 18,000 non-agricultural jobs to their wages and payrolls and the national unemployment rate was 9.2 percent.

Which today numbers show declining share prices for further decline in consumer spending and can cause further downward pressure on employment.

Eighty percent of the shares belong to the richest 10 percent of Americans. And the richest 20 percent of Americans account for about 40 percent of consumer spending, says Michael Niemira, Chief Economist at the Council International in shopping malls.

The Niemira economy is notes, "more dependent on high output so (sales luxury) could have a major effect."

Institutional investors deal with Thursday's decline has include San Bernardino County employees retirement Association, which connected investment to more than 32,000 people with San Bernardino County Government and other public institutions is responsible for the management of pension.

Although SBCERA executives said there is no doubt their stock portfolio losses absorbed on Thursday, they were far away in a panic to get.

More than 6 billion USD investment volume in SBCERA that pay pension only 28.5 per cent is invested in the equity markets and investors have $600 million in bar, which can be used, use for post-plunge bargain hunting.

"We would be opportunistically add positions in this market" SBCERA investment officer James Perry said.

The associated press contributed to this report.


via:Top News Google

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