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Economist claims US is already in recession

Dr Mark Faber, economist and author of the Boom Doom and Gloom report, says optimism on the prospects for the US economy is misplaced as the world’s biggest economy is already in recession.

Speaking at the Ashburton investment conference in Jersey last week, Faber said the sub-prime crisis and falling house prices have had a massive impact. He said: “I would suggest to you that the US economy is already in recession.”

He pointed to a contraction in the US current account deficit over the past three months as evidence of recession. The US economy’s resilience has been put down to consumer spending but Faber said the contraction is due more to falling volumes of imports into the US than a fall in consumption.

Faber said the fact that the world’s economies have been in a synchronised boom – the first time this has happened in 200 years – could spell trouble.

“The fact we have a synchronised global boom suggests we will have a synchronised global bust which will be rather unpleasant,” he said.

Economist Anatole Kaletsky said big dollar reserves held by emerging economies, including China and Brazil, coupled with demand from India and China, should make up for the fall in US consumption.


Hips rolled out to one and two bedroom homes from December 14

The Government has announced today that Home Information Packs will be extended to one and two bedroom homes from December 14.HIP Payment Services chief executive Jeff Smith says: “Today’s announcement will be greeted with much enthusiasm and relief from the industry, which has been tirelessly campaigning for HIPs to be fully extended across the whole […]

RBSIP cuts proc fees across brands

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Sants’ Aifa speech

With his speech already released, FSA chief Hector Sants will offer an RDR olive branch at tonight’s Aifa dinner when he meets the great and good of the IFA world. Sants will say the FSA has been unclear about its intentions and yet unless he is saving some big announcement for this evening, we have […]

Rennison warns provider technology could stall CAR

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Large-cap growth alpha thesis: seeking risk-adjusted excess returns

Content supplied by Loomis, Sayles & Company — an affiliate of Natixis Global Asset Management For mutual fund investors and managers of large pensions or endowments, a major challenge is to identify those portfolio managers who are most likely to deliver superior risk-adjusted returns in the future. Understanding how an investment philosophy informs a manager’s decision […]


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