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The 'R-Word' Surfaces on Wall Street

Posted Nov 27, 07 12:38 PM CST in Business 

(Newser) – Wall Street has the recession jitters: Markets are down 10% since October, the S&P 500 is down as analysts predict depressed earnings, and T-bills are down on anticipated Fed rate cuts. But there’s a flip side: Holiday sales gained 8.3% over 2006, unemployment is at 4.7%, and a slowdown doesn’t mean recession, reports the Washington Post.

But don’t try to paint a bright picture for Wall Street. “We believe we are going to see a recession in '08," Merrill Lynch analysts wrote yesterday. In a tail-wagging-the-dog effect, recession expectations could result in one because of how the markets are part of mainstream America. "These things feed off each other,” said one economist.

Source Washington Post

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Trader David R. Campanile, left, and others react in the Standard & Poor's 500 futures pit at the Chicago Mercantile Exchange in Chicago on Wednesday, Oct. 31, 2007.   (Associated Press)
Pedestrians pass by the New York Stock Exchange on Wednesday, Nov. 14, 2007.   (Associated Press)
Traders and Specialists work on the trading floor of the New York Stock Exchange shortly before the closing bell Wednesday, Nov. 7, 2007.   (Associated Press)
Crude oil traders work on the floor of the New York Mercantile Exchange on Wednesday, Nov. 21, 2007. Crude oil prices rose above a record $99 per barrel Wednesday as worries about inadequate winter supplies...   (Associated Press)
Federal Reserve Board Chairman Ben Bernanke speaks at the CATO Institute's annual Monetary Conference, Wednesday, Nov. 14, 2007 in Washington. (AP Photo/Caleb Jones)   (Associated Press)
Federal Reserve Board Chairman Ben Bernanke discusses the economic outlook while testifying on Capitol Hill in Washington, Thursday, Nov. 8, 2007, before the Congressional Joint Economic Committee. (AP...   (Associated Press)
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US economy  • subprime mortgages  • recession  • Wall Street  • Ben Bernanke  • investing


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