Wall Street: credit crisis?

Article Abstract:

Consumer debt has increased in the US and this has led to fears of recession. Repayment of loans would mean a drop in demand which in turn would mean production cuts and job shedding. Not all debt taken out can be sustained, argues Lawrence Lindsey, a governor from the Federal Reserve. Lower interest rates allow consumers to carry more debt and reduce their propensity to repay it, but there are still dangers that could emerge if unemployment rose, consumer confidence fell or banks opted for tighter lending policies.

Economic aspects

---

Wall Street: spending alert

Article Abstract:

There is concern that US consumer spending may be less than expected by retailers, leading to an increase in inventories and a drop in output and employment. Industrial production dropped in Oct 1996 with a drop in the output of consumer goods and an increase in retailers' inventories. Jobd insecurity could lead to a higher saving rate, according to one view, though others argue that savings rates are rising because incomes have increased and are set to increase further.

Consumer Expenditures, Private Households, Forecasts and trends, United States economic conditions, Consumer spending

---

Wall Street: debt doubts

Article Abstract:

There is a debate on the impact of debt on US consumer spending. Some analysts fear that debt levels have risen so high that spending cannot be sustained. Interest payments account for some 17% of post-tax income for households according to Federal Reserve estimates. Banks are finding that more consumers cannot repay debt. Others such as Morgan Stanley's Stephen Roach see consumer spending as sustainable due to increases in real net incomes and rises in share prices.

Consumer Credit

Similar abstracts:

• Abstracts: Wall Street: bets on the Fed. Wall Street: selling delayed. Flat-to-net short
• Abstracts: Wall Street: false miracle. Wall Street: a euphoric mood
• Abstracts: US bonds: bond blues. Wall Street: deja vue
• Abstracts: Wall Street: bets on the Fed. Making money from Uncle Sam
• Abstracts: Cash without dash. Focus changes from east to west

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.