October: Largest Job Creation Month

Good news for an American economy that needs something positive.  According to the U.S. Labor Department, the American economy had the biggest job creation that it’s had in five months during October.  Economists were cautiously optimistic with this news.  As Carl Riccadonna, an economist at Deutsche Bank said, “This is not a gangbusters report, but it is very important. It shows us that the momentum in employment is building.”

In a White House statement, President Barack Obama said that the jobs report is “encouraging news” and he encouraged both Democrats and Republicans to propose more ways to boost the economy.

The European Economic Impact on America

No economy exists in a bubble, and America is certainly not an exception to that rule.  The widening fiscal issues in Europe are threatening to have an impact on the economic recovery in America.  As Ruth Stroppiana, and economist in London, said about the situation in Europe, “It’ll take years of savage spending cuts, wage cuts and welfare-pension reform to eventually grow out of the debt situation.”

American businesses, which count on Europe as a major market, will certainly feel this downturn. During January and February of 2010, U.S. companies exported $36.5 billion of products to the EU nations.  Should the economy continue on its downward spiral there, it will certainly have an impact on exports and on the world economy.  Read more about these issues and their impact on the American economy.

Financial Crisis was the Perfect Storm, Say Wall Street Bankers

[youtube http://www.youtube.com/watch?v=n0XIF84AtYg&w=420&h=315]

In this video, Wall Street bankers who were testifying before Congress explained how the recent financial collapse was the perfect storm. Hear Dylan Ratigan and Eliott Spitzer, among others, discuss the recent financial crisis and what should be done about it.

General Electric Co. Warns of Touch Economic Times Ahead

When a major company, such as General Electric Co., warns of economic hardships, it’s certainly time for the rest of the American economy to listen. In a discouraging report on Friday, GE posted a 46% drop in their fourth-quarter earnings and warned that they, and many other companies, may be in for a difficult year.

As GE’s Chief Executive Jeff Immelt told analysts on an investor conference all, “The environment in total is very tough.” The quarterly revenues slipped 5% to $46.2 billion.

U.S. Economy Showing Signs of Recession

While the U.S. economy is on the brink of a recession, the economy did expand at a .6% annual pace during the first quarter. Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina, said that, “If you were to take out the swing in inventories, these numbers would be negative.” In an interview with Bloomberg Television, he continued by saying,“We think we’re in recession, but I don’t know that the GDP numbers are going to turn negative at all in 2008.”

The largest part of the economy, household spending, grew during the last quarter at the slowest rate that it has since 2001, during the time when the U.S. was in a recession.