Posted on 08/28/2007 12:22:40 PM PDT by Hydroshock
Car dealership group AutoNation Chief Executive Mike Jackson said Tuesday the U.S. economy is in danger of slipping into a recession unless the Federal Reserve moves aggressively to cut interest rates.
"I think we are at a tipping point," Jackson told Reuters in an interview. "They have to recognize that they are bringing into play a recession for this economy.
"They need to begin to cut rates, not just once but several times," he said of U.S. monetary policy makers. Jackson, who runs the largest publicly traded car dealership group in the United States, said the pressure on the economy is hurting auto sales.
RELATED LINKS Fed Hoped to Avoid Rate Cut At Aug. 7 MeetingHome Prices Skid 3.2% And May Decline Further State Street Shares Rattled by Credit Worries Deutsche's Americas CEO Sees End to Credit Crunch Recession Around the Corner More Economy News He now expects U.S. industry-wide sales to slip to 16 million light vehicles this year.
(Excerpt) Read more at cnbc.com ...
A little humor on a dark day:
Q. Who was the greatest financier in the Bible?
A. Noah He was floating his stock while everyone else was in liquidation.
That’s pretty good.
If the bank lent them the money and assumed all of the risk then yes. But in that case then if the bank goes bankrupt too, that money will stay circulating.
Japan did all of the things that are being suggested now, cutting rates to nothing, and massive government borrowing to jump start the economy. But they wouldn’t just accept bankruptcies and write off the bad debt.
That's even worse. If the bank is out of business, then it can't make any loans at all. Almost every depression I know of was preceded by numerous bank failures.
Japan did all of the things that are being suggested now, cutting rates to nothing, and massive government borrowing to jump start the economy. But they wouldn’t just accept bankruptcies and write off the bad debt.
OK, now I know where you're coming from. Japanese banks couldn't make new loans because they didn't have the reserves, and that's because they were carrying too many non-performing loans. Anything that prevents banks from making loans is deflationary.
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