Notebook: Recession (CBS News)
CBS
Transcript
[Music] the economy is going through one of its roughest patches in years stocks are plummeting the FED is slashing interest rates and the president is looking for ways to fight off a recession but are we already in a recession according to CBS News financial adviser Ray Martin some indications Rising unemployment inflation lower personal income and a dramatic drop in stocks suggest yes and the r-word index how many times recession is mentioned in the media has spiked of late that index has pinpointed the beginning of previous recessions there have been 11 of them since World War II on average they've lasted 10 months the best thing to do experts say build a cash cushion and prepare to sit tight to paraphrase Margot Channing and all about About Eve fasten your seat belts it's going to be a bumpy ride that's a page for my notebook I'm Katie kurick CBS News
AP Money Minute: Surprise Rate Cut Saves Markets
Associated Press
Transcript
AP money minute it could have been much worse that's the sentiment on Wall Street after the Dow avoided an historic drop closing down 128 points at the opening bell the market plunged 465 points in the Dow joining a global sell-off sparked by fears of a recession in the US but the Federal Reserve stepped in with an emergency rate cut dropping the federal funds rate 3/4 of a point it was the largest cut in 16 years aimed at making it easier for companies and consumers to borrow money some analysts say the US economy needs much more in order to stop this vicious cycle we need more than rate cuts that might stimulate the economy in 6 months or a year we need economic data today that shows the economy a stabilizing and finally a sign of the times at Yahoo the internet giant is poised to lay off hundreds of workers according to the New York Times and Wall Street Journal Yahoo employs 14,000 people around the World a final decision on a number of layoffs is expected later this month I'm Mark Hamrick with ap money minute
Fed Hopes to Jump Start Economy
Associated Press
Transcript
the Federal Reserve had the larger economy not just the stock market in mind when it issued a surprise interest rate cut but Wall Street was clearly paying attention minutes after trading opened on the New York Stock Exchange the sell orders that had piled up during the worldwide slide over the holiday weekend pushed the Dow Jones Industrial Average down 465 points but the 3/4% cut the fed's largest since 1991 took hold as the Dow trimmed its losses still Market Watchers say rate Cuts alone aren't going to rescue the economy or the market which is reacting to monster losses from mortgages and weakening earnings elsewhere in order to stop this vicious cycle we need more than rate cuts that might stimulate the economy in six months or a year we need economic data today that shows the economy is stabilizing Washington is looking to bring about that stability with an economic stimulus plan the Senate finance committee heard testimony today that to be effective any stimulus needs to deliver money to Consumers now uh the sooner the better and and uh the more that can be delivered during uh the first half of 2008 the better and uh the more that's delivered uh into 2009 and thereafter the greater the risk is that you're exacerbating uh fiscal outcomes and exacerbating inflationary pressures the explosive growth of stock markets in places like India and China in recent years suggested that maybe the world economy had started to decouple itself from dependence on the United States but the financial earthquakes touched off in market after market because of fears of a US recession indicate that hasn't happened yet stock markets like interest rate Cuts in part because they tend to De press the value of fixed income Investments like bonds making stocks more attractive by comparison but with a possible recession threatening the earnings prospects of a growing number of companies stocks aren't looking that attractive either Warren levenson the Associated Press at the New York Stock Exchange