To cut or not to cut? Oct 5, 2009
"Depleted household wealth effects, with deflationary house price values, are sure to contribute to tardy demand for credit. Households have been under increasing financial strain due to high interest rates and inflation prior to the recession, which has reduced the ability to save. As such, the continued decline in economic activity and lacklustre path to recovery will prolong the downward trend in PSCE," she says. No doubt, the central bank has a tough balancing act to perform. (iAfrica.com)
Credit slides to lowest in 43 years Oct 1, 2009
Standard Bank economist Shireen Darmalingam said, with interest rates at 27-year lows, "one would expect that consumers may be enticed to spend" but she pointed out that "depleted household wealth effects, with deflationary house price values" was holding them back. This view is confirmed by Reserve Bank figures, which show household spending contracted for four consecutive quarters. (Business Report, South Africa)
Public Information Notice: IMF Concludes 2009 Article IV Consultation with South Africa Sep 11, 2009
Rising employment, growing personal income, and wealth effects from rising asset prices buoyed household consumption, while strong business confidence and high commodity prices supported private investment. The current account deficit widened sharply and was financed mainly by robust portfolio inflows. (IMF News)
Summers says U.S. economy back from abyss Jul 18, 2009
Factors supporting growth include the growing impact of both fiscal stimulus and measures to support the financial system, the wealth effects of stronger asset markets, inventory replenishment, and the replacement cycle for automobiles and other consumer durables. But Summers also warned that it is too early to say that the U.S. economy has walked out of the recession. (Xinhuanet, China)
China Needs Domestic Consumption for Economic Recovery, Researcher Says Jul 4, 2009
Wealth effects from stock and property investments can help consumption in the short term but it wont last, , a research manager at Changjiang Pension Insurance Co. in Shanghai, said by phone. Rising asset prices can form a bubble, which will hurt the economy when it bursts. (Bloomberg -- Asia)
Statement of the Monetary Policy Committee Jun 26, 2009
9 Household consumption expenditure is expected to remain constrained by tighter credit criteria of banks and negative wealth effects. The various house price indicators all show that house prices have continued to decline. (Business Report, South Africa)
Malaysia's consumer confidence falls in H1, to improve in H2 Jun 16, 2009
RAM Holdings Bhd chief economist Dr Yeah Kim Leng said the other key factors underpinning a return in consumer sentiment included the positive wealth effects of the stock market run-up, low interest rate and liquidity-flushed environment. Effects of the first and second fiscal stimulus packages and, lower-than-expected number of job losses and distressed companies in the first half of this year were other reasons, he said. (The Star Online, Malaysia -- Business)
Happy days are here again? Not likely Jun 4, 2009
The people, and particularly David Jones's higher-end customers, were feeling the negative wealth effects from a falling stock market and weaker property prices. By the time the second cash injection began coursing through, the general mood was starting to change. (Sydney Morning Herald -- Business)
Submit Comment May 23, 2009
health effects, but they sure have had a lot of good wealth effects. " /> Search: lect> for: | May 23, 2009 | | | | | | | --> --> --> Type Size: Good health, good wealth Posted: Saturday, May 23, 2009 I don't see why some in Union County are so opposed to a refinery. My grandfather bought a farm and moved his family of six to Oklahoma in 1911. In the teen years, Champlin and Sinclair bought refineries in the same county. None of my relatives have suffered any bad health effects, but they sure... (Sioux City Journal, IO)
SA consumers to suffer Apr 18, 2009
"Private consumption's contribution to economic activity will be much smaller this year. Residential construction and home sales are faltering as lenders tighten credit standards. Negative wealth effects are battering consumer confidence and constraining spending," they say. The central bank is expected to continue to cut rates aggressively in coming months. (iAfrica.com)
Mboweni announces repo rate cut Mar 25, 2009
"World inflation is being restrained by declining demand and lower commodity prices which are expected to remain subdued under these conditions of negative or low growth. "The weak global demand has been reflected in the export performance of the South African economy and domestic demand conditions had also deteriorated further," he said. "Domestic demand conditions are expected to remain under pressure as a result of declining disposable incomes, tighter credit conditions and negative wealth... (Business Report, South Africa)
Lending rate near zero Mar 4, 2009
Potential delays in stabilizing the global financial system, along with the larger-than-anticipated confidence and wealth effects on domestic demand, could mean that the output gap will not begin to close until early 2010, the statement said. That will keep inflation slightly lower in the months ahead than originally thought, policy makers said in the statement. (Globe and Mail)
Bank of Canada cuts key lending rate to 0.5% Mar 4, 2009
Despite its aggressive cuts, it noted: "Potential delays in stabilising the global financial system, along with larger-than-anticipated confidence and wealth effects on domestic demand," could push a turnaround from mid-2009 to early 2010. AFP. (Sydney Morning Herald -- Business)
Hawaii tourists down 12.5%, spending drops by $149.7 million Feb 27, 2009
"I'm thinking the pricing will have more of an impact. They're concerned that the adverse wealth effects of lower incomes and job uncertainty will weigh more heavily.". Total visitor days for air and cruise visitors in January 2009 fell 10. (Honolulu Advertiser)
Asia stocks fall on growing US ec... Feb 24, 2009
Asia stocks fall on growing US economic fears - Times Online. With our 2 for 1 offer at PizzaExpress. (New York Post -- Business)
