Wells Fargo Economics Scott Anderson, Ph.D. Vice President Senior Economist Plunging Into The New Year Durango, CO January 9, 2008
U.S. Economy SevereRecession Worst in Post- War Period
U.S. Recession Comparisons PCE (%) NRFI (%) UE (PP) Jobs (%) Jobs (#, mil) ’73-’75-1.8%NA %-1.6 ’81-’82-0.8%NA %-2.7 ’90-’91-1.1%-8.2% %-1.5 ’08-’09-3.1%-12.3% %-5.5 Source: BEA; BLS; Wells Fargo Economics Peak to trough changes
A Credit Crisis In The Making
February 22, 2008 Copyright 2008 The New York Times Company Copyright 2008The New York Times Company
Banks Tightening Credit Across The Board
Senior Loan Officer Survey Credit Crunch
Little Appetite for Risk
Credit Spreads Near Record Peaks
Where Does This Leave the Housing Market?
Washington to the Rescue! Stimulus, Stimulus, and More Stimulus
Fed Activity Federal Funds Target Rate Source: Federal Reserve
Liquidity Improved But Still Abnormal! Despite Fed’s Extensive Credit Facilities and Lending
Inflation Turns into Deflation??