Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

Merrill CEO: Economic Environment Recalls 1929

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Wednesday, Nov 12, 2008

Merrill Lynch Chief Executive John Thain said the global economy is in a deep slowdown and will not recover quickly, and the environment recalls 1929, the advent of the Great Depression.

Speaking Tuesday at his bank’s annual financial services conference, Thain said he was “cautiously optimistic” about the outlook for the industry. But he said credit remains constricted and asset prices generally are still falling.

“The U.S. economy is contracting very rapidly,” creating uncertainty “at least over the next few quarters,” Thain said. “We are going to be in a very difficult economic environment for a significant period of time.”

Conditions deteriorated as the housing market collapse mushroomed into a more general crisis of confidence.

(Article continues below)

This resulted in market-shaking events, including the Sept. 15 bankruptcy of Lehman Brothers [LEHMQ 0.06 — UNCH (0) ] and Merrill’s [MER 14.90 -0.61 (-3.93%) ] decision the same day to quickly sell itself to Bank of America [BAC 18.69 -0.79 (-4.06%) ] for $50 billion.

  • A d v e r t i s e m e n t

Through Monday, the value of the all-stock merger had fallen 42 percent because Bank of America shares are down. Thain nevertheless said market conditions for financial services companies were improving, in part because of the government’s $700 billion industry bailout package.

As an example, he said Merrill recently issued three-month commercial paper, which typically funds companies’ day-to-day operations. For a time, it had been able to issue only overnight paper.

Full article here

This article was posted: Wednesday, November 12, 2008 at 4:53 am

Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

Raheem Kassam: Sh*thole London See the rest on the Alex Jones YouTube channel.

Germans Being Mass Brainwashed by TV to Submit to Islam See the rest on the Alex Jones YouTube channel.

https://www.youtube.com/embed/bcPVfa76Qig https://www.youtube.com/embed/kYmTFL9nbRQ

© 2018 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.