Citigroup vice chairman warns credit crisis will hit real economy in US

Analysis

The unwinding of positions in the US subprime credit market will hurt the real economy in the US, but the extent of that damage won’t be clear for another two to three months, Citigroup Inc. Vice Chairman William Rhodes said Thursday.

“We won’t know until this unwinds itself what the damage is going to be,” Rhodes told a session of the World Economic Forum. “It seems very clear, in the United States it will be an impact on the real economy and that depends on the impact on the consumer.” Economists are expressing growing concern about a possible recession in the US economy as a result of tighter credit markets in the US.

Rhodes said looking beyond the subprime crisis, his greatest concern going forward is protectionism and nationalism. “This world ‘goldilocks’ economy is being fueled by open trade and I’m very concerned by about what I see in the markets,” he said. He said the stalemate in the Doha Round of World Trade Organization negotiations and delays in the US of bilateral trade agreements point to difficulties ahead for the global economy. “When you get protectionism in the world economy, then you get nationalism - the two go together,” he said. (marketwatch.com)

ADVERTISEMENT

Business confidence improves as consumer sentiment worsens Analysis

Business confidence improves as consumer sentiment worsens

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.