Skip to comments.Double-dip fears across the West as confidence crumbles
Posted on 08/30/2011 1:55:54 PM PDT by bruinbirdman
The Western world is at mounting risk of double-dip recession after key measures of confidence collapsed in both the United States and Europe, with Germany suffering the steepest one-month fall since records began in the 1970s.
The US Conference Board's index of consumer sentiment in August plunged to the lowest level since the depths of the slump in 2009, falling to 44.5 from 59.2 in July. Future expectations fell even harder.
The drop was far steeper than expected and follows grim warnings over the weekend from Christine Lagarde, new chief of the International Monetary Fund, that the global crisis is entering "a dangerous new phase" .
The fund has slashed its growth forecast for America and Europe, according to a leaked draft of its World Economic Outlook. It has called on both the US Federal Reserve and the European Central Bank to stand ready for "further easing of monetary policy" - implying a fresh blast of quantitative easing (QE) by the Fed.
The minutes of the Fed's meeting in early August show that a number of committee members called for more "substantial" stimulus, suggesting that they pushed for further bond purchases or 'QE3'.
The Fed's so-called "Gang of Three" hardliners has already shrunk to two. Minneapolis Fed Narayana Kocherlakota said on Monday that deflationary pressures are building again. "Increasing policy accommodation might well be appropriate," he said.
In Europe the picture is as bad if not worse. The eurozone is already on the cusp of recession even before austerity bites in Italy and France, and bites harder in Spain, Portugal, Greece, and Ireland.
The European Commission's economic sentiment index (ESI) dropped below the contraction line in August. "A loose monetary policy seems to be the only medicine left to prevent a painful fall back into recession
(Excerpt) Read more at telegraph.co.uk ...
I look at the world and I notice it’s turning
While my guitar gently weeps
With every mistake we must surely be learning
Still my guitar gently weeps
AEP - Lord Doom - just doesn’t give up, does he? Well, with any (bad) luck he’ll be right one of these days.
- The Original Double Dip -
Its two dips, two dips, two dips in one !
Inspite all of the MSM lies, we are in a Depression.
Our Savemart across the street closed down, what a shame. It was so convenient to run across the street to get a loaf of bread or a gallon of milk.
You can go from boom to bust
From dreams to a bowl of dust...
Another lost generation.
We are indeed!
This is NOT a double dip because we never had a significant upturn. This is just a continuation of a marxist assault on our capitalistic system. A double dip means that we had a recovery in there somewhere. Someone, other than the state controlled media, tell me when we had a recovery.
It’s all bs.
who is the lost generation?....I don’t know if I feel worse for us or our kids.....they haven’t got a chance.....
Yeah - I’m 51. I’m thinking of my kids. But I haven’t given up the hope or the fight. My mantra is “Carter got us Reagan...” Although the slide started WAY back when, and Reagan was but a respite.