Behind the bailout, the economy lurks

Published: Oct. 15, 2008 at 7:54 AM
Related Company

WASHINGTON, Oct. 15 (UPI) -- The $700 billion U.S. bailout designed to put the financial market back on its feet isn't going to help the underlying economy, analysts said

As credit markets show signs of improvement, the economy remains on the brink of recession, The New York Times said Wednesday.

Recent monetary policy shifts "will stabilize the market, but the real economic issues remain," Ira Jersey of Credit Suisse told the Times.

"Everything the government has done is not going to prevent further deterioration in the economy," said Stuart Hoffman, chief economist at PNC Bank.

"At the end of all this, what matters is what the economy does," Hoffman said to the Times.

Experts predict the U.S. gross domestic product will show marginal growth in the third quarter, the Times reported. The next GDP figure is due for release Oct. 30.

Consumer spending, propped up by jobs and wages, accounts for two-thirds of the nation's economy.

Reflective of consumer spending Tuesday, investors were cheered by a strong earnings report released Tuesday by Intel Corp., but discouraged by news from PepsiCo. The soft drink giant said in a release that it would close six plants and dismiss 3,300 workers.

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
Grain futures mixed Thursday (18 min)
Report: Russian swimmers set relay record (20 min)
Report: Canada paper producers in trouble (21 min)
First transgenic prairie vole developed (24 min)
Judge declares Samueli innocent (27 min)
Training can re-do brain connectivity (28 min)
U.S. markets rise on unchanged bank rates (35 min)
fark
Photoshop theme: Do not disturb
'The most disturbing video you'll see all week' featuring a lady living in a guys apartment without...
Despite massive personal risks, North Koreans are starting to openly protest, criticize their government...
Seal pup found wandering a few miles from the ocean. Maybe he was going clubbing?
Today's "truck spills metric assload of ..." comes to you from Nashville, TN where you can go out...
Old & busted: Finding dates online. New hotness: Hiring Suresh in Bangalore to find you dates online...