NY Times: Economic Uncertainty Spreads

[marmar]

By KEITH BRADSHER and CARTER DOUGHERTY
Published: October 10, 2008


In Korea, exporters are suddenly struggling.

In Sweden, Volvo is cutting thousands of jobs.

In Japan, which thought it was immune to the market chaos, a credit squeeze seems to be forcing small companies into bankruptcy.

Around the world, fears of recession have fed a stock market panic, as worries about toxic assets spread from the financial sector to the credit markets and now to the broader economy.

Companies from Germany to Asia are hoarding cash because credit markets are tight. The sheer uncertainty of it all is upending plans for businesses to expand. Consumers have pulled back, just as they received some relief from high oil prices.

Even creditworthy companies cannot get money in Europe. And across Asia, export growth has slowed to a crawl or started declining in real terms — and that was before American retailers announced steep sales declines on Wednesday.

The United States, once the engine of the global economy, is ailing and in no position to inspire confidence, much less point the way around or out of recession. Americans are seen as both the root of the problem, and powerless to solve it. .......(more)

The complete piece is at: http://www.nytimes.com/2008/10/11/business/worldbusiness/11ripple.html?_r=1&oref=slogin

[leeroysphitz]

1. Depressing. n/t

[Jacobin]

2. I think its a little too late in the game to call it "uncertainty"

It's more like, 'we're fucked'

[SammyWinstonJack]

3. Heckuvajob bu$hco.

x(

[gopbuster]

4. It would appear the next year or few will be a period of economic consolidation

I would expect to see a period of bankruptcies, mergers and acquisitions in businesses across the globe.

The endgame outcome will be a tighter monopoly of corporate dominance on the global landscape. All this will actually serve to solidify the global economy in the long run, but it is likely to be very painful along the way.

[marmar]

5. Tighter monopoly of corporate dominance and solidifying global economy? None for me, thanks.

I agree with Ralph Nader on this statement: "Greedy capitalists have destroyed capitalism."

I actually see Keynesi-ism on steroids: With more localized economies.

[gopbuster]

6. lol....well... I agree with you but I would not count on our corporations

being disconnected from the global aspects.

I believe some things will be done to bring back into our own localized economy to help strengthen with the incorporation of Keynesian type policies but the fact remains that through economic downturns consolidation into fewer stronger hands will still take place. Some may very well include across border mergers.

[gopbuster]

7. To add:

My comment might have been better read or phrased to mean a stabilization of local economies across the globe due to the consolidation which leads to a better health of the global economy in general.