Friday, April 9, 2010
“Look for growth rates to be an annualized 4 percent to 5 percent in the first half of the year,” El-Erian says.
The second half of the year is a different story, El-Erian says: Growth will likely slow in the second half to an annualized 2 percent.
“Unfortunately, we will also have persistently high unemployment,” he told MarketWatch. “That’s very unusual in the United States, which tends to have a flexible labor market.” (more)
“I’ve lived with my brother, my cousin, my friend and my dad,” he said. “The IRS keeps calling me, asking me: ‘What’s your address?’ And I say, ‘What week is this?’”
Armed with college degree and an MBA, Brown, 49, built a solid resume over three decades as a corporate controller for several Fortune 500 companies, including W.R. Grace and Wal-Mart, before launching his own global consulting business with clients in Europe and Mexico. But when the Panic of 2008 sent clients scrambling, he was unable to keep up with a jump in his mortgage payments and lost his home to foreclosure. (more)
The average rate on a 30-year fixed rate mortgage was 5.21 percent this week, up from 5.08 percent a week earlier,
Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the
BLS Releases Latest Job Openings Data, Number Of Unemployed People Per Open Spot Increases In February To 5.5
Looking back, September 20, 2007, was the first time in nearly three decades that the Canadian dollar reached parity with the U.S. dollar. Fueled by strong commodity prices, the Canadian dollar soared to a high of $1.1043 before falling back into a range of 0.97-$1.03. It traded within that range until the global financial crisis began in August 2008. With gigantic firms such as Lehman Brothers and Bear Sterns failing, investors became risk-averse and bought U.S. Treasuries. That helped spark a short and powerful move up in the U.S. dollar, which weakened the Canadian dollar. The Canadian banking system managed to survive the crisis better than most nations' banking systems. And, as we saw commodity prices recover, so did the Canadian dollar, from a bottom of 0.7653 in March 2009.
In the last few months, traders and analysts have been anticipating the Canadian dollar would hit parity. Now that parity has been reached, some are taking their positions off, but many are letting their bets ride with the belief that the Canadian dollar still has a lot of upside potential. (more)