Posts Tagged Economy

Greece Zinged again: S&P Confirms Horrid Rating and moves to Negative Outlook

via: JohnGaltfla
by: John Galt
August 7, 2012

Or it could be actually worse than anyone, as usual, wishes that poop can be turned into gold well, still smells like and looks like poop. S&P has acted and for anyone who thinks that the Greek situation is “under control” or that the nation has been saved. Because it is game over soon.

From Reuters & S&P:

S&P revises Greece’s outlook to negative

5:18pm EDT

Overview

– Following delays in implementing budgetary consolidation measures and a worsening Greek economy, we believe Greece is likely to require additional financing for 2012 under the EU/International Monetary Fund (IMF) program (EU/IMF Program).

– We consider the Greek government will find it difficult to make further cuts to meet the conditions to secure the next disbursement of the next tranche of funding from the EU/IMF Program.

– We are revising the outlook on the long-term ratings on Greece to negative, reflecting the possibility of a downgrade if Greece fails to secure the next disbursement of the EU/IMF Program.

Continue Reading At: JohnGaltFla.com

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UK economy flatlining, NIESR says

via: TheTelegraph
by: Angela Monaghan
August 7, 2012

The British economy shrank by 0.2pc in the three months to the end of the July according to the National Institute of Economic and Social Research.

It followed a 0.7pc fall in gross domestic product in the three months to the end of June, which left Britain in its first double-dip recession since 1975.

The think-tank estimated the economy grew by 1.4pc in July alone, but senior research fellow Simon Kirby said the number was “flattered” partly by a rebound in activity following the work lost over the Jubilee bank holiday weekend in June.

“The underlying economy is probably weaker than the figure would suggest. It doesn’t change the view that the economy is essentially flat,” he said.

NIESR’s estimate came as the Bank of England was poised to give a gloomy assessment of the economy’s prospects in its latest forecasts on Wednesday.

The Bank of England is expected to sharply downgrade its forecasts for growth and inflation when it publishes its August Inflation Report .

Continue Reading At: Telegraph.co.uk

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Consumer Credit Misses As Revolving Credit Has Biggest Contraction Since April 2011

via: ZeroHedge
By: Tyler Durden
August 7, 2012

Tyler Durden's picture
Just like every other aspect of the global economy and capital markets, the sudden, rapid moves in every times series are becoming increasingly more pronounced: today’s case in point – consumer credit. Instead of rising by the expected $10.25 billion in June, following the whopper of a May bounce when it grew by $17 billion, in June, credit rose by only $6.46 billion. On the surface this was not a big miss and was the 10th consecutive increase in a row, driven exclusively by non-revolving credit – i.e. student and GM subprime loans. However, looking below the surface shows that following May’s biggest monthly surge in revolving credit since November 2007 (+$7.5 billion), consumers have again expressed a revulsion to credit, with revolving credit sliding by $3.7 billion: this was the biggest monthly contraction in revolving credit since April 2011, and before that since February 2009. Did Americans developed a sudden taste for credit funded consumption in May, only to puke it all up and then some in June? It sure appears that way based on recent retail sales numbers. The July retail sales number will simply confirm if the re-icing of US consumers has continued for another month.

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