Manufacturing and service industries in Europe show signs of recession – a global slowdown forced by credit problems and financial meltdown
Fred Day
Aug. 24, 2007

The financial meltdown is now showing its nasty teeth in European economies.

Growth in Europe's manufacturing and service industries slowed in August as the pace of orders cooled, indicating turmoil in world credit markets may be starting to weigh on the economy.

A preliminary estimate of Royal Bank of Scotland Group Plc's combined index, spanning industries from autos to banking and airlines in the 13-nation euro region, fell to 57.2 from 57.5 in July. Individual indexes for both services and manufacturing also eased.

Euro-area growth slowed in the second quarter following ECB interest-rate increases, gains in the euro and a rebound in oil prices. The pace of expansion declined to 0.3 percent from 0.7 percent in the first three months. In Germany, the largest of the region's 13 economies, growth slowed to 0.3 percent from 0.5 percent, led by the biggest decline in construction in a decade.

Manufacturing and service industries in Europe show signs of recession – a global slowdown forced by credit problems and financial meltdown
Fred Day
Growth in Europe's manufacturing and service industries slowed in August as the pace of orders cooled, indicating turmoil in world credit markets may be starting to weigh on the economy.
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Bank of America planning to buy Countrywide – the start of second leg of the financial meltdown
Peter Oberois
The banking and mortgage crisis is deepening very fast. Bank of America’s (BoA) decision to contribute $2 Billion is significant. They plan to buy out the countrywide mortgage.
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How close is the US economy to a major recession?
Sam Adelton
Recession will not happen till these low paying jobs disappear. That may take some time but when it comes, it will not be a recession – it will be a deflation driven depression in the economy.
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Tip of the iceberg in corporate mismanagement - corrupt Dell top executives sought accounting adjustments to reach quarterly performance goals
Peter Khanna
This is what went on in corporate America in the name of guidance and quarterly performance improvement. Dell is just the start of the scandal. Almost all companies will start restating earnings.
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The credit market defies Fed action – Federal Reserve in deep trouble for the first time – a typical stagflation sliding into deflation
Peter Oberois
The Federal Reserve’s half a point reduction in discount rate is received by the credit market poorly. The liquidity crunch will not go away and the long term rates shot up for the fear of inflation. Gold jumped and then started sliding.
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Federal Reserve finally realizes the problem – the discount rate cut is just a temporary relief
Sam Adelton
The futures market literally collapsed due to lack of liquidity. The Panicked Fed cut discount rate by 05% but that will halt the route for a few days or perhaps a week before the meltdown starts again.
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Dow makes stunning comeback
Media Release
Major gauges erase most of the day's losses, as investors recover from mortgage, credit fears; Dow, Nasdaq, S&P 500 stabilize after falling 10% from 2007 highs.
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