Monday, August 05, 2002
Two related articles. International Monetary Fund Sees Gloomier Economic Outlook. "Despite that hope for an improving economy, the IMF conceded weak stock prices, exacerbated by accounting scandals and an uncertain corporate profit outlook, could yet undermine consumer and business confidence." Consumer Credit: Is a Crunch Coming. "... people are piling up huge debts. The amount that Americans owe on loans for houses, cars, credit cards, and other purchases adds up to nearly 100% of their annual income after taxes. That's up from 75% in 1992, after the last recession ended. Even if consumers are willing to take on more debt, lenders -- and more important, the investors who buy many of the loans they securitize -- may soon decide that enough is enough. If the credit crunch now squeezing business starts to hit consumers, whose spending accounts for two-thirds of gross domestic product [GDP], the U.S. economy could wind up in a world of trouble."
Posted to finance @ 3:58:08 PM ()
Copyright (C) 2002 Paul Kulchenko
Updated 8/22/2002; 5:27:53 PM
