A Few Economic Notes
Posted by Jordan Crouch on January 14, 2008
- After flirting with bankruptcy several times last week, Countrywide was bailed out by Bank of America. The planned $4 Billion purchase by BofA follows a $2 Billion cash infusion made by BofA last year.
- WaMu, also suffering from sub-prime losses, is rumored to be a takeover target by JP Morgan.
- There is growing concern about an economic recession in the US and what effect a full-blown recession will have on the world economy.
- The commercial real estate market has not seen the drastic slowdown that the residential market has, but some prognosticators are expecting a similar situation in the commercial real estate to occur in the next 12 months. Will this happen? Time will tell.
- The Federal Reserve will meet later this month and is expected to lower interest rates again.
