US could be heading for recession (Ex-Treas Sec Larry Summers)

[RamboLiberal]

Source: Telegraph.co.uk

Former US Treasury Secretary Larry Summers warned that the United States may be heading into recession as the biggest victim to date of the sub-prime mortgage debacle was humiliatingly sold for a token sum in Germany.

Traders are braced for another week of turmoil after the near breakdown of America's $2,200bn (£1,100bn) market for commercial paper.

"It would be far too premature to judge this crisis over," Mr Summers said. "I would say the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11."

In Germany, it emerged that the state-bank SachsenLB may have accumulated $80bn of exposure to risky assets through a set of Irish funds kept off balance sheet.



Read more: http://www.telegraph.co.uk/money/main.jhtml ;jsessionid=4EFJ1B0K5B111QFIQMGSFFWAVCBQWIV0?xml=/money/2007/08/27/cnusecon127.xml

[Double T]

1. Ya THINK?!?! Another week of bailing out the MEGA.......

corrupt criminal corporations in the financial sector.

[lovuian]

2. Ahhh the Truth is coming out Irish funds off the balance sheet

and sold a bill of goods

it must have been deliberately done

Federal Reserve is going to put us in a severe depression and Greenspan had a hand in it

[Hulk]

3. History buffs....

Try taking a look at "post Vietnam". Ever wonder why we had a recession in the mid 70's?? Can you spell V I E T N A M??? We are now tossing our economy into Humvee's, helmets, bullets, bombs, choppers, flack jackets, etc, etc. When this occupation finally comes back to sanity....do you honestly think we are going to avoid a recession?? If you do, you are dumber than the chimp and co.

[RamboLiberal]

4. Add that corruption just flowers under Repuke administrations

This one might make the S&L scandal look like a piker!

[enid602]

6. blame

The Republicans know the war will bring on a recession. They're just hoping they can blame it on a successive Democratic Administration, just as they did with Carter (and very successfully so) in the '70's.

[Supersedeas]

12. and the investment in bullets for Baghdad got us what?

[hatrack]

5. Gee, Larry, thanks for the heads-up!!!!

Fucking ridiculous - tell me something I DON'T know, asshole!

[area51]

7. Head for recession?

How can we head for it, when we've been in recession since '01?

[mojavekid]

8. ....

http://www.shadowstats.com/cgi-bin/sgs/data

[whistle]

35. Is M3 the one which shows that inflation is well into the shit storm now?

[Viva_La_Revolution]

9. or a Depression...

whatever.

Winner of the "DUH!" Headline of the Week Award

[truthisfreedom]

And money is just FLYING off the printing presses at the FRB.

Can't you just smell it?

[truthisfreedom]

10. And money is just FLYING off the printing presses at the FRB.

Can't you just smell it?

[BootinUp]

11. can't find the article at link...

[TrogL]

13. Link

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/...

[The Sushi Bandit]

14. US could be heading for recession

Source: Telegraph (UK)

Former US Treasury Secretary Larry Summers warned that the United States may be heading into recession as the biggest victim to date of the sub-prime mortgage debacle was humiliatingly sold for a token sum in Germany.

Traders are braced for another week of turmoil after the near breakdown of America's $2,200bn (£1,100bn) market for commercial paper.

"It would be far too premature to judge this crisis over," Mr Summers said. "I would say the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11."

In Germany, it emerged that the state-bank SachsenLB may have accumulated $80bn of exposure to risky assets through a set of Irish funds kept off balance sheet.



Read more: http://www.telegraph.co.uk/money/main.jhtml ;jsessionid=4EFJ1B0K5B111QFIQMGSFFWAVCBQWIV0?xml=/money/2007/08/27/cnusecon127.xml

[DJKDJKDJK]

15. Can't go into recession if the people have jobs.

That WGA and repeal of NAFTA sure sounds good right about now.

www.dennis4president.com

[whistle]

26. That is 18 months away from happening unless Dennis Kucinich can pull it off now

[youngdem]

28. Huh?

Denny ran Cleveland into the ground. Read up on it.

He's a nice guy, but NOT a good administrator. In fact, he is consistently cited as one of the 50 worst mayors in recent American history.

[Doremus]

29. You quoted corporatist spin pretty well. Now how about the truth?

Monied interests (aka fat cats) were trying to get rid of the municipal light company (aka low-cost electricity) and Dennis wouldn't play.

You sure you're on the right board?

[dickbearton]

31. Ya, just like Bush...

was a great governor. Watch were you do your reading, there is
more to being informed then you think, don't keep it to simple
------. As for 50 worst mayors, what idiots came up with that
celebrity poll. Cleveland was a rust belt city, doing better
now, no thanks to Corrupt Republicans or Incompetent and/or
Criminal Republican Presidents. Maybe you should change your
name from youngdem to young-----.

[youngdem]

34. no reason to change your name I see. Dick fits.

Denny isn't an effective administrator. I don't have to be a Repuke to understand or believe that.

Denny polls in the single digits IN HIS OWN PARTY. I think the word is out beyond just repukes that he might not be a strong, able leader. Or is EVERY Dem who understands this really a DINO? Please.

He's just a really nice, well-intended idealist who, when given the chance to lead - failed.

Calling me a repuke shows just how shallow your basis for refuting this is.

[redqueen]

16. This section is for BREAKING news, thanks.

[dickbearton]

32. History is breaking news for some people, thanks.

[redqueen]

33. When I said "thanks" it was jokey.

How are you using it there?

[David__77]

17. Cheap money and higher government spending are only reason we aren't already in recession.

The junction of a housing bubble and low interest rates enticed millions to extract transient value from their homes, in turn fueling consumer spending and conversely economic growth. The war against Iraq and other new government expenditures have also provided and basis of growth. Now, however, the "other shoe" is dropping in this unsustainable scenario. Bush's economic policies are just as tactical and short-sighted and all his political calculations.

[zbdent]

18. funny ... no recession under Clinton, and at least one

under the Repuke regime ... if not a second ...

[bamacrat]

19. Why do people elect pukes?

Everytime they get in office they fuck up any economic prosperity Dems have made. Its like people forget that the publicon party is all about them getting rich and to hell with the country and everyone else.

[cheddar99]

20. I don't give

any credence to any gubbermint official, past, present, or future. They are all, with very few exceptions, scum bags of the highest order. Recession is in the eye of the beholder. For instance, I have been living in a recession for the last thirty years. The grifters, on the other hand, have never seen times any better.

[sutz12]

21. "Commercial paper".........kind of says it all, doesn't it?

[mvd]

22. It's been in an unofficial recession for a while, if you are..

middle class or poor.

[backscatter712]

24. Recession? Or Second Great Depression?

I've been seeing a lot of bad signs - the bottom falling out of the housing market, the surge in foreclosures, the implosion of subprime lending, the spiraling national debt, the collapse of the U.S. Dollar, the destruction of good middle class jobs in exchange for McJobs through offshoring, etc.

I don't know that it will be as bad as the Great Depression, but I do know it's sure going to suck.

[whistle]

27. An economic meltdown would mean a depression and one far deeper

...than the great depression of 1929 to 1933. A meltdown is where this economy is headed unless measures are taken to stop that from happening. Nothing that the Federal Reserve and for that matter this congress has down can prevent that and this latest infusion of some $115 billion into the banking system will actually trigger more individual bankruptcies and people having their homes and businesses taken from them.

[Hulk]

23. Go figure...when Iraq is "done", we'll see post Vietnam recession all over again.

Check your history facts. Once we get off this war economy, where we are artificially pumping up the economy with bullet dollars, we'll see the economy slip back into recession too. Of course, the idiots on the neocon fascist persuasion are poised to blame the Democrats for the recession, just like they did to Carter. What buffoons.

[whistle]

25. Dah, $115 billion by the U.S. Federal Reserve in the past ten days ALL OF IT

....earmarked for big banks to save their stock values and none of that liquidity to be used for new loans on mortgages or to consumers and so not one dime of those Federal Reserve government backed and taxpayer funded federal debt funded infusion into the financial sector will go into stimulating the economy.

Yes of course their will be a recession engineered by the federal reserve and fully designed to give big banks the liquidity to buy up bankrupt property and force millions of families out of their homes and onto the streets.

[Doctor_J]

30. Sherlock fuckin' Holmes

All the other potential Nobel Laureates in Econ might as well fold their tents.



Edit: or maybe I should say nostra-fuckin'-damus

[Orsino]

36. "Could Be Heading For"

Translation: we're in a recession.