Friday, February 13, 2009
This article highlights how the financial crisis has spread like a disease throughout the world. Unemployment rates are rising, growth rates are declining, and the economic pain is felt globally.
The Financial Ninja does a series called Really Scary Fed Charts (here is his latest), highlighting the Fed's balance sheet since it starting growing under the credit easing policy (you can see JKA for a short description of CEP). Hopefully he won't mind that I copied his title - it's just too catchy.
G7 Growth rates are falling flat - Canada is the last man standing.
However, 18 economies posted negative annual growth rates, ranging from Latvia, -10.5%, to the U.S., -0.2%, and average growth across all 50 economies is 1.67%. And there are a lot of developed economies in this category: U.S., Italy, Japan, Iceland, France, Denmark, Netherlands, Belgium, to name a few; actually, most of them are. The downside risk to World growth is very high, and the number of contracting economies will likely grow in coming quarters.