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Old 04-25-2009, 05:31 AM   #1
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Default G7 signals worst of world recession may be over

Reuters - Finance chiefs from the G7 powers said on Friday the global economy may be past the worst phase of a recession although recovery was not yet assured, and they pledged to make sure that big financial firms are sound.

G7 signals worst of world recession may be over
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Old 05-21-2009, 05:05 PM   #2
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Gonna get worse a-fore it gets better...

Fed's economic forecast worsens
May 20, 2009: Central bank now expects unemployment to rise to a range of 9.2% to 9.6% this year. Fed also predicts a sharper decline in GDP than it had forecast in January.
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The Federal Reserve's latest forecasts for the U.S. economy are gloomier than the ones released three months earlier, with an expectation for higher unemployment and a steeper drop in economic activity. The Fed's forecasts, released as part of the minutes from its April meeting, show that its staff now expects the unemployment rate to rise to between 9.2% and 9.6% this year. The central bank had forecast in January that the jobless rate would be in a range of 8.5% to 8.8%, but the unemployment rate topped that in April, hitting 8.9%.

The Fed also now expects the gross domestic product, the broadest measure of the nation's economic activity, to post a drop of between 1.3% and 2% this year. It had previously expected only a 0.5% to 1.3% decline.
At the April meeting, the Fed decided to once again leave its key federal funds rate near 0%, a level it has been at since last December. The central bank also announced that it did not plan on increasing purchasing more long-term Treasury notes anytime soon.

The Fed disclosed plans to begin buying $300 billion's worth of such Treasurys in March in order to try and keep long-term rates down and boost economic activity. But according to the minutes, some members of the central bank's policy committee indicated they were open to increasing its purchases of Treasury notes and mortgage securities as a way of spurring more lending.

More Fed's economic forecast worsens - May. 20, 2009
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Gonna take us a l-o-n-g time to work our way outta this one...

Treasury prices spiral lower
May 21, 2009: Government debt prices retreat from earlier highs as the Treasury announces more than $100 billion worth of debt coming to the block.
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Government debt prices turned sharply lower Thursday after the Treasury announced more than $100 billion worth of new issuance headed to market. An already shaky and thin trading day was further eroded by ratings agency Standard & Poor's lowering its outlook on Britain to negative. S&P said Britain's debt could near 100% of GDP and warned it could downgrade the country's AAA credit rating. The worries overflowed into U.S. assets, said Kim Rupert, analyst at Action Economics.

"Investors connected the dots," Rupert said. "It would be unusual to see a U.S. downgrade, but investors know we're suffering from the same problems as Britain." In an attempt to help solve some of those problems, the U.S. government has been issuing new debt at a breakneck pace to fund economic recovery efforts. That increased supply continues to weigh on prices.

At the same time, the government is buying back Treasurys in an effort to stimulate demand and keep yields in check. The Fed bought $7.4 billion worth of debt Thursday as part of its $300 billion buyback program. On Wednesday, the Fed bought $7.7 billion in debt maturing between February 2016 and May 2019.

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Old 05-25-2009, 02:37 AM   #3
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Recession reducing foreign aid...

Foreign aid may be biggest victim of global recession
Monday, May 25, 2009, Poor countries, already hard hit by the global economic downturn, are now facing cutbacks in foreign assistance from traditional donors saddled with rapidly expanding deficits.
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The worldwide recession has driven 50 million people into extreme poverty, said the World Bank and the IMF, which have exhorted rich countries to live up to promises to boost development aid. “There’s a risk that these promises will not be kept if the crisis deepens,” warned Jose Gijon, head of the Africa-Middle East department at the Organisation for Economic Cooperation and Development.

Shanta Devarajan, chief economist for Africa at the World Bank, said: “The fiscal pressure that developed countries are facing, especially to address the problems of their citizens, is so high that it will be hard to get political support to maintain the level of foreign aid.” He said a 2005 pledge from the G8 industrialized powers to double aid to Africa, made when the world economy was flourishing, had already fallen about US$20 million short of the target before the latest crisis erupted late last year. “If during the boom period they were unable to meet these commitments, I’m wondering what is going to happen now that we’re in a deep recession,” he said.

Emmanuel Frot of the Institute of Transition Economics in Stockholm described development aid as an “easy target” for governments anxious to trim spending. He said his research had shown that six countries that had suffered an economic slowdown in the 1990s, including Japan and the US, had in one year cut their overseas assistance by 13 percent.

Aid volumes came to a record last year but have now begun to slide. Italy has reduced its overseas development budget by 56 percent and Ireland by 10 percent, while Latvia has abandoned such initiatives altogther, the European Network on Debt and Development said. Oliver Buston of the non-governmental organization ONE has noted that in addition to a fall in aid amounts, there has been a worrisome shift “toward more loans and less and less grants,” which could trigger a “debt crisis.”

Taipei Times - archives
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Old 07-05-2009, 10:40 PM   #4
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Poor gettin' poorer...

Recession pushed 90 million into extreme poverty-UN
Sun Jul 5, 2009 * Recession has pushed millions more into extreme poverty * Sickness more prevalent, life-saving drugs out of reach * U.N. Secretary-General calls for continued aid in crisis
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The global recession has pushed up to 90 million more people into extreme poverty, the United Nations said on Monday, warning that a reduction in foreign aid could cause more hunger and disease. U.N. Secretary-General Ban Ki-moon said impoverished people have already suffered most from the economic crisis and urged rich countries not to cut their assistance budgets.

"The numbers of people going hungry and living in extreme poverty are much larger than they would have been had progress continued uninterrupted," Ban said in a foreword to the U.N.'s annual progress report, which he launched in Geneva. Several aid groups also published studies on Monday warning that the souring economy had made more people dangerously sick. A drying-up of foreign aid "is likely to lead to preventable deaths and disease," according to a UNAIDS/World Bank report, which found that many patients are struggling to gain access to life-saving drugs because of the downturn.

"The global economic crisis has the potential to affect the lives of 3.4 million people on antiretroviral treatment, another 7 million who also need the treatment but don't have access to it and others who will need treatment in the future," it said. "There is a strong risk that prevention programmes for populations at higher risk will be cut. This would increase the numbers of new infections and people who need treatment in the future, imposing higher future costs."

FUNDING SCARCE
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Old 07-06-2009, 05:11 PM   #5
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I think the greed of the rich went too far this time....we will not recover from this until we let the rich crash and burn with insurmountable losses
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