If the Americans stop shopping, then panic
The chief executive of Wal-Mart, H Lee Scott, yesterday delivered disturbing news from the aisles of America’s biggest retailer: “It is no secret that many customers are running out of money towards the end of the month,” he said. “The pay-cheque cycle is in fact more pronounced now than it ever has been.”
The collapse of sub-prime lending in the US has, so far, spooked corporate lenders, roiled the global equities markets and mortally wounded a handful of hedge funds.
In broader economic terms, though, its impact has so far been limited. On the eve of the recent ructions in world markets, the International Monetary Fund revised up its forecast for global growth to 5.2 per cent for 2007 and 2008.… Seguir leyendo »