Japan Predicts Negative Growth for 2009
Japan’s government has revised its economic growth outlook for 2009 and now says that the economy will shrink by 0.8% instead of the modest 1.3% growth it had forecast earlier this year. In addition, the Bank of Japan has lowered interest rates to 0.1 percent and analysts are predicting that the Bank – forced now into a policy of quantitative easing as opposed to interest rate management – could buy up to 20 trillion yen worth of shares from the nation’s commercial banks. More
General Motors and Chrysler to Receive Emergency Funding
In what may be the worst-kept secret in Washington these days, a spokesperson for President Bush stated that the President will announce special funding for the beleaguered automakers at 9:00 AM Washington time. $13.4 billion will be taken from the Troubled Asset Relief Program (TARP) immediately, with another $4 billion in February under the condition that the companies work towards sustainability and prove they can remain financially solvent. If they fail to meet these condition by March 31st, 2009, the loans will be called and the money must be returned. More
France Expected to Fall Into Recession – Early 2009
France’s GDP is expected to show a 0.8 percent decline for the current quarter which will lead the economy into a recession by early 2009. More
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