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US dollar rallies as extent of worldwide recession becomes clearer By Ambrose Evans-Pritchard, International Business Editor Last Updated: 10:13pm BST 08/08/2008 The psychology of global markets has shifted hugely over recent days as it becomes clear that Europe, Australasia and parts of Asia are sliding into recession. The US dollar has launched its best rally in half a decade, reflecting a recognition that half the world is in even worse shape than the US. In fact, America is the only G7 country to eke out modest growth this summer. The US dollar index - currencies watched closely by traders -...

RGE Monitor MEDIA ALERT: Nouriel Roubini predicts the worst financial crisis since the Great Depression and the worst U.S. Recession in the last few decades. New York, July 15, 2008- In a series of recent writings on the RGE Monitor Nouriel Roubini - Chairman of RGE Monitor and Professor of Economics at the NYU Stern School of Business - has argued that the U.S. is experiencing its worst financial crisis since the Great Depression and will undergo its worst recession in the last few decades. His analysis leads to the following conclusions: This is by far the worst financial crisis...

The United States appears to be on a downward spiral from which there is no apparent escape. Our very way of life is being severely threatened in the interest of fairness, multiculturalism and liberalism in general. Tradition, culture and national identification mean nothing anymore because so-called progressives -- the new term for liberals -- are bent on molding this country into an unidentifiable glob of feel-good socialism. One need only look at recent events in order to verify my concern. The country is flooded with illegal aliens who have no fear of apprehension or deportation and in fact are aided...

PARIS (AFP) — Recent massive volcanoes have risen from the ocean floor deep under the Arctic ice cap, spewing plumes of fragmented magma into the sea, scientists who filmed the aftermath reported Wednesday...

The top ten likely effects as the bear market bites Patrick Hosking: Business Commentary There is now no doubt about it. Even the cheeriest of optimists would have to acknowledge that we are in the grip of a pronounced bear market. The FTSE 100 has slumped by more than 500 points in the past month and from the peak of last October is down by 18 per cent. At one point yesterday it dived to 5,470, close to the nadir of the Bear Stearns panic in March, although it managed a half-hearted rally at the end of the day. One...

So much for that second-half rebound. Truth be told, that was always more of a wish than a serious forecast, happy talk from the Fed and Wall Street desperate to get things back to normal. It ain't gonna happen. Not this summer. Not this fall. Not even next winter. This thing's going down, fast and hard. Corporate bankruptcies, bond defaults, bank failures, hedge fund meltdowns and 6 percent unemployment. We're caught in one of those vicious, downward spirals that, once it gets going, is very hard to pull out of. Only this will be a different kind of recession --...

<-----------------------------------------snip-----------------------------------------> ~ EXCERPT ~ There is evidence that fall campaigns, which tend to focus voters on big-picture issues, usually help Republicans. In 1976, Gerald Ford was seen as a goner during the summer but rallied to finish only two points behind Jimmy Carter. A dozen years later, Michael Dukakis led George H.W. Bush in June and July. He lost by eight points in the fall. In 1992, Bill Clinton had a 10-point lead around Labor Day. He won by only five and a half points. Even Bob Dole closed a 12-point Labor Day gap to only eight points by November...

"Dear Friend, I've taken the liberty of enclosing a McCain 2008 bumper sticker for you. I'm hoping I can count on you to display your sticker right away as part of our effort to build momentum and excitement all across America."

US slump to prop up India as next offshoring hotspot 14 May, 2008, 0750 hrs IST,Chiranjoy Sen, TNN BANGALORE: Belt-tightening by global technology giants—a fallout of US economic slowdown—is likely to reinforce India as the most preferred offshoring destination. Top technology firms are actively moving part of their workforce from the US, UK and European markets to lower-cost destinations. They cite availability of local talent, better delivery and conducive enviroment as key offshoring reasons. While they may not admit it, firms would be looking at stepping the gas on offshoring to curb bloating costs and to lift margins. Networking and...

Discussions of the current political situation and comparisons between the 2008 election and earlier contests frequently overlook a crucial fact. As a result of changes in American society, today's electorate is very different from the electorate of twenty, thirty, or forty years ago. Three long-term trends have been especially significant in this regard: increasing racial diversity, declining rates of marriage, and changes in religious beliefs. As a result of these trends, today's voters are less likely to be white, less likely to be married, and less likely to consider themselves Christians than voters of just a few decades ago. The...

First, the bad news: the inner solar system is unstable. Given enough time, Jupiter's gravity could yank Mercury out of its present orbit. Two new computer simulations of long-term planetary motion — one by Jacques Laskar (Paris Observatory), the other by Konstantin Batygin and Gregory Laughlin (University of California, Santa Cruz) — have both reached the same disturbing conclusion. Says Laughlin, "The solar system isn't as stable as we'd thought." Both teams have found that Jupiter's gravity can increase Mercury's orbital eccentricity over time. Mercury's path around the Sun is already nearly as elliptical as Pluto's. But Jupiter can make...

It’s not a script for the next science-fiction thriller, but renowned British scientist James Lovelock is giving human civilization less than 32 years before all hell breaks loose because of the effects of global warming. Lovelock said the impact of climate change is irreversible regardless of what mankind does. “By 2040, the world population of more than six billion will have been culled by floods, drought and famine,”

Everyone here is flummoxed about why the president is in such a fine mood. The dollar’s crumpling, the recession’s thundering, the Dow’s bungee-jumping and the world’s disapproving, yet George Bush has turned into Gene Kelly, tap dancing and singing in a one-man review called “The Most Happy Fella.” “I’m coming to you as an optimistic fellow,” he told the Economic Club of New York on Friday. His manner — chortling and joshing — was in odd juxtaposition to the Fed’s bailing out the imploding Bear Stearns and his own acknowledgment that “our economy obviously is going through a tough time,”...

"Decline in Home Prices Accelerates" — Page One headline, The Wall Street Journal, Feb. 27 Gloom. Doom. Calamity. Home prices are tumbling. We're bombarded by somber reports. But wait. This is actually good news, because lower home prices are the only real solution to the housing collapse. The sooner prices fall, the better. The longer the adjustment takes, the longer the housing slump (weak sales, low construction, high numbers of unsold homes) will last. It's elementary economics. Pretend that houses are apples. We have 1,000 apples, priced at $1 each. They don't sell. We can either keep the price at...

If John Chambers and some other corporate chieftains put on more than a few pounds in coming months, U.S. network news channels and the pundits they interview regularly on economic issues will be considered partly to blame for the increase in executive body mass. Chambers, chairman and CEO of Cisco Systems Inc., has been cutting back on his exercise and trending towards foregoing his rigorous early morning workouts because of the depressing pile of negative economic and stocks market news churned out daily by cable business channels. "I think we are actually talking ourselves into this [economic] slowdown," Chambers told...

California and Bay Area cities must start planning now for new and costly systems to control increasing runoff from urban storms, springtime floods from swollen rivers and rising sea levels as they invade lowlands, all as a result of global warming, climate scientists and water experts warn. . . . But Barnett maintained that models of warming in the future mean "a coming crisis in water supply for the Western United States." And in an interview he put it more dramatically: "We're headed for a train wreck," he said.

I don't think it was just us that was surprised yesterday in what happened in New Hampshire. You know, it's amazing. I went back last night and I said to one of our researchers, I said, would you do me a favor: Go back and find as much as you can on the parallels of other elections. When was the last time we had an election like this? Well, the last time we had an election like this was 1928. 2008 is the first time since 1928 that there is no incumbent President or incumbent vice president running for either...

It’s impossible to open a newspaper without being told how awful the American economy is. Yet it’s just as hard to open your eyes without seeing how outstanding the American economy is. Consider an AP report from Dec. 4. “Hiring practically stalled in December, driving the nation’s unemployment rate up to a two-year high of 5 percent and fanning fears of a recession,” it begins. Yawn. At this point it’s probably impossible to count how many warnings of recession we’ve endured. Today the threat is rising unemployment. Last month it was the collapse of subprime mortgages. And in the years...

NEW YORK (CNNMoney.com) -- Sales of existing homes fell to a record low in October, according to the latest reading on the battered housing market by an industry trade group released Wednesday, as even the largest drop in home prices ever wasn't enough to revive moribund sales. The National Association of Realtors reported that sales of homes by homeowners fell to an annual pace of 4.97 million in October, down from the revised 5.03 reading in September, which was the previous record low since the trade group started tracking sales on that basis in 1999. Economists surveyed by Briefing.com had...

Applications for U.S. home mortgages fell last week as rates on some adjustable loans soared to their highest levels in more than two months, according to data from an industry group Wednesday. RELATED LINKS Comments Lift Sentiment Stocks Open Higher Durable Goods Orders Fall for Third Straight Month Mortgage Applications Fall as Rates Soar The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 4.3 percent to 652.5 in the week ended Nov. 23. Rates on one-year adjustable-rate mortgages that include many jumbo loans climbed 26 basis points to 6.24 percent, the highest since the height...

The Socialist Democrat’s Creed – “Doom and Gloom from Womb to Tomb” I wanted to address the negativity that some Americans have made such a large part of their way of life. I have observed that more Americans thrive on negative news about America. These Americans previously predicated negative news. The negative news appears to provide some ego satisfaction when it occurs. On closer observation, I discovered a link between the liberal’s thirst for celebrating all things negative about America and the media’s quest to satisfy that thirst. The liberals and the media also express a desire for America to...

The euro, worth 83 cents in the early George W. Bush years, is at $1.45. The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century. Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800. Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years? Nope. The dollar has...

WASHINGTON (AP) -- Consumers, battered by a steep downturn in housing and a severe credit crunch, slowed spending growth in September to the weakest performance in three months. The Commerce Department reported Thursday that consumer spending rose by 0.3 percent in September, slightly lower than the 0.4 percent increase that analysts had been expecting. Incomes grew by 0.4 percent, matching the August gain, and in line with analysts' forecasts. Video More video The latest in business news with the CNN.com business bulletin. Play video Economists are worried that consumers, the main support for the economy, may cut back on their...

LAWRENCE — Mario DeJesus struggled under crushing mortgage payments for two years. Now, about to lose his home to foreclosure, he has no money left to move his family into an apartment. Altagracia Portorreal sleeps uneasily since teenagers broke into the vacant home next door, abandoned by a neighbor who couldn’t keep up with the mortgage. Bienvenido Chalas is cutting the hours of employees who clean carpets and refinish floors as foreclosures drag down the housing market that supports his business. DeJesus, Portorreal, and Chalas are three faces of the foreclosure crisis sweeping the north side of Lawrence, a crisis...

The American economy, God bless it, isn't listening to all those doom-and-gloom predictions that we are marching headlong into a recession before the end of the year.   The professional pessimists who persistently peddle their predictions on the network news and business shows have been warning us all year that the economy is headed toward the cliff. Many of them were at it again this week — hoping against hope their cataclysmic forecasts will come to pass.  The lead economic story in The Washington Post Sunday began this way: "The economy is slowing, the dollar is falling. Wall Street is laying...

"For the time being, the sense is the sky is not falling."

LONDON – The fate of the world economy hinges on what happens to house prices in America and that may not be a good thing, former Federal Reserve chairman Alan Greenspan said on Monday. Speaking at the Reuters headquarters in London, the former Fed chair delivered a gloomy prognosis on the state of the global economy – U.S. house prices are likely to fall further and they could drag the rest of the world with them. * * * “The critical variable in this judgement is the price of homes in the United States,” said Greenspan, who ran the U.S....

Democratic presidential candidate John Edwards said if he wasn’t elected president, the population of African-American males is likely to either wind up in prison or dead. At an MTV/MySpace.com forum Thursday, Edwards responded to a question about inner-city kids partaking in violence by saying there was no “silver bullet” to fight the problem. “We start with the president of the United States saying to America, ‘we cannot build enough prisons to solve this problem. And the idea that we can keep incarcerating and keep incarcerating — pretty soon we’re not going to have a young African-American male population in America....

Consumer Spending Posts Better-Than-Expected Gain While Inflation Eases WASHINGTON (AP) -- Consumers shrugged off a rash of bad news to spend more than expected in August while a key measure of inflation eased to the slowest pace in 3 1/2 years. The Commerce Department reported Friday that consumer spending rose by 0.6 percent in August, the best showing in four months and better than the 0.4 percent increase that had been expected. Incomes rose by 0.3 percent last month, slightly lower than had been expected. A closely watched gauge of inflation was up just 1.8 percent in August, compared to...

NEW YORK (CNNMoney.com) -- The bullhorn message from the government to mortgage lenders has been: Bend. Do what you can to help struggling homeowners. The message to troubled homeowners has been: Call your lender. You may be able to work something out. Despite the persistent blare, there is not a whole lotta "loan modifying" going on yet. A survey by Moody's found that most loan servicers this year had modified only about 1 percent of their adjustable-rate mortgages (ARMs) that had reset to higher rates by the end of July. At the Consumer Credit Counseling Service (CCCS) of San Francisco,...

WASHINGTON (AP) -- Demand for big-ticket manufactured goods plunged in August by the largest amount in seven months, with widespread weakness signaling a slowdown in the nation's industrial sector. The Commerce Department reported Wednesday that orders for durable goods, everything from commercial jetliners to home appliances, fell by 4.9 percent in August, the biggest decline since a 6.1 percent fall in January. It was far larger than the 3.5 percent drop that economists had been expecting and resulted from across-the-board decreases in a number of categories. The concern is that the steep downturn in housing and turbulence in financial markets...

September 25, 2007 -- A BIG-mouthed extra working on the new "Indiana Jones" flick has blown his fledgling movie career to smithereens by spilling the film's major plot points. Director Steven Spielberg and producer George Lucas made the entire cast and crew of "Indiana Jones and the Kingdom of the Crystal Skull" sign nondisclosure agreements. But Tyler Nelson - cast as a "dancing Russian soldier" - gave an interview to his hometown newspaper, the Edmond Sun in Oklahoma, in which he revealed that: * Indy, played once again by Harrison Ford, and the Soviet army are both searching for a...

In the face of the rate cuts by the Federal Reserve yesterday, long-term bonds are collapsing. The bond market views the rate cuts as highly inflationary.

NEW YORK - U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the group said Tuesday. The decline in home prices around the nation shows no evidence of a market recovery anytime soon. MacroMarkets LLC Chief Economist Robert Shiller said the declining residential real estate market "shows no signs of slowing down." The index tracks the price trends among existing single-family homes across the nation compared with a year earlier .

<p>NEW YORK (Reuters) - Countrywide Financial Corp Chief Executive Angelo Mozilo said on Thursday the U.S. housing downturn is likely to lead the country into recession, but that the largest U.S. mortgage lender will survive.</p> <p>In an interview, Mozilo also said that to promote liquidity, the U.S. Federal Reserve should cut the rate it charges banks to borrow.</p>

NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site. The Aug. 20 letters from the Fed to Citigroup and Bank of America state that the Fed, which regulates large parts of the U.S. financial system, has agreed to exempt both banks from rules that effectively limit the amount of lending that their federally-insured banks...

NEW YORK - Bad credit has supplanted terrorism as the gravest immediate risk threatening the economy, a key national research group reported Monday. Borrowers' withering ability to pay their bills and the subsequent fallout in the credit markets this summer topped the list of short-term risks on peoples' minds, according to a survey of 258 members conducted by the National Association of Business Economics. NABE, a Washington-based association, said 32 percent of its surveyed members cited loan defaults and excessive debt as their biggest near-term concern. Only 20 percent of members cited defense and terrorism as their biggest immediate worry,...

Subprime-battered mortgage lenders are shutting down, fewer homes are being built, and even some of the big U.S. retailers are planning conservatively for Christmas holiday sales. It will take a few months to show up in the economic data that Wall Street and the Federal Reserve watch, but the slowing U.S. economy is hitting the job market, and economists say it is only a matter of time before unemployment ticks up. "Growth is skimming along at around 2 percent, and that is not strong enough to keep the unemployment rate from rising," said Brian Bethune, U.S. economist with Global Insight...

Until a few months ago, it seemed that anyone who could fog up a mirror could get a mortgage. Now, with a credit crisis roiling the industry, some consumers might think they have a better chance winning the lottery than finding a home loan. The truth is that you can still get a mortgage. It just may not be as easy--or as cheap--as it was over the past few years. "If you have good credit, can document your income and have money for a downpayment, it’s largely business as usual," says Greg McBride, senior financial analyst at Bankrate.com. Borrowers seeking...

Countrywide CEO: Mortgage Crisis Persists Despite BofA Stake Topics:Subprime Lending | Mergers & Acquisitions | Banking | Mortgages Companies:Lehman Brothers Holdings Inc | Countrywide Financial Corp | Bank of America CorpBy CNBC.com | 23 Aug 2007 | 01:31 PM ET Font size: The chief executive of Countrywide Financial told CNBC that Bank of America's $2 billion investment in the struggling mortgage lender was a "priceless endorsement" for Countrywide but said the crisis in the housing and mortgage markets isn't getting any better. "It's a great endorsement of Countrywide," CEO Angelo Mozilo told Maria Bartiromo in an exclusive interview. "It's important...

NEW YORK (CNNMoney.com) -- Jennifer Falke and her family had been in their Columbus, Ohio home for nearly 12 years when they hit a rough patch in 2006. Falke was out of work and fell behind on the mortgage. Falke said a flood of mailings and flyers then arrived at her door promising help from foreclosure rescue companies claiming to act as an intermediary between her and her lender to keep her from losing her home. According to Falke, the company she contacted, Foreclosure Assistance Solutions (FAS), simply took her money and did nothing for her. And by delaying a...

WASHINGTON (MarketWatch) -- The chairman of the Senate Banking Committee is urging the Bush administration to push through changes in a federal housing program that he says could help save troubled borrowers from foreclosure on their homes. In a letter to Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson, Sen. Christopher Dodd, D-Conn., said the U.S. is experiencing record foreclosures and that it's "essential" that the Federal Housing Administration act to preserve homeownership for as many Americans as possible. The administration is studying the idea of allowing the agency to refinance troubled loans, something it's not...

NEW YORK (CNNMoney.com) -- Ford CEO Alan Mulally became the latest high-profile business executive to suggest that the Federal Reserve needs to cut interest rates, according to a report published Friday. Noting that credit conditions were posing a "big headwind" to the company's turnaround plan, Mulally told the Financial Times he is concerned about the state of the larger economy. Next victim of mortgage mess: Auto sales Video More video Fortune's Sue Callaway reviews and compares the Audi S4 and the BMW M5. Play video "It is a really important job to manage inflation and economic growth [but] focusing on...

WASHINGTON (MarketWatch) -- Sales of new home increased 2.8% in July to a seasonally adjusted annual rate of 870,000 as the inventory of homes for sale dropped for a fourth straight month, the Commerce Department estimated Friday. Sales were stronger than the 820,000 annualized pace expected by economists surveyed by MarketWatch. See Economic Calendar. In addition, sales in June were revised slightly higher. Sales are down 10.2% compared with last July. Read the full report. Stocks turned higher after the report was released. See Market Snapshot. Inventories of unsold homes fell about 1% to 533,000, the fourth consecutive decline. At...

NEW YORK (CNNMoney.com) -- In another sign of how dire the subprime mess has become, mortgage lenders shed about 18,000 jobs this month, according to one estimate. But while the crisis has been largely contained to mortgage lenders and financial services firms, some economists see subprime-related labor trouble spreading to other parts of the economy in the months ahead. The number of casualties has already been significant. The collapse of New York-based American Home Mortgage Investment Corp. earlier this month resulted in the loss of nearly 7,000 jobs. On Wednesday, Accredited Home Lenders (up $0.14 to $6.24, Charts) said it...

CHARLOTTE, N.C - At the North Carolina offices of mortgage lender HomeBanc Corp., Archie Clark is the only employee left. But in a few days, he’ll be gone, too. “It’s pretty much a ghost town over there,” Clark said. “Somebody went in and took the furniture from the lobby. I don’t know who did that. I put some of the other stuff in the back and locked it up.” When Clark finishes helping movers from the company’s Atlanta headquarters collect computers and other property, he’ll join the more than 25,000 workers nationwide who have lost jobs in the financial services...

NEW YORK (CNNMoney.com) -- Tens of thousands of frightened homeowners looking to get out from under the crumbling walls of the subprime mortgage collapse have found refuge in a variety of programs. When Senate Banking Committee Chairman Christopher Dodd mentioned the national Homeowner's HOPE Hotline in comments Tuesday, it triggered some 3,000 calls. An announcement in April that the Neighborhood Assistance Corporation of America would be offering $1 billion in rescue money to beleaguered borrowers has prompted more than 50,000 inquiries, according to the organization. And in Ohio, New York, Massachusetts, Maryland and other states, distressed mortgage holders are clamoring...

The Fed hit the market with a surprise 50-basis-point discount rate cut that caught many traders leaning the wrong way Friday. The rate cut came in response to the subprime crisis and is giving the credit markets the one thing that they need the most, liquidity. Options House Zecco.com Fidelity Investments Charles Schwab E*TRADE FINANCIAL TD AMERITRADE The Fed is hoping that by injecting liquidity into the credit markets, it can avert a meltdown of the financial system. If the Fed has to take further action in response to the subprime crisis and continue pouring in liquidity, we may see...

NEW YORK (Reuters) -- A prolonged U.S. housing slump is causing a surge in the number of job losses announced by U.S. financial services companies, consulting firm Challenger, Gray & Christmas Inc. said Tuesday. The financial industry has announced 87,962 job cuts so far this year, 75 percent more than the total of 50,327 in all of 2006. Of this year's cuts, 41 percent related to troubles in the mortgage market, including riskier subprime mortgages, Challenger said. In August alone, there have been 20,957 announced job cuts, including 11,040 since Friday, Challenger said. Since Friday, Bear Stearns Cos Inc. (up...

(Fortune Magazine) -- What could the collapse in the subprime mortgage market possibly have to do with whether Dr. Jeffrey and Madeline Stier get full price for their four-bedroom house in the wealthy New York City suburb of Larchmont? Not much, you would think. After all, the people who live in Larchmont tend to be lawyers, doctors, and Wall Streeters. Generally speaking, they aren't the credit-challenged borrowers who must resort to subprime mortgages to finance their homes. Reduced: The asking price for this house in affluent Larchmont, N.Y., was recently reduced from $2.5 million to $1.99 million. More from FORTUNE...