US economy is crashing
The world’s largest economy, the US, has shrunk by 6.2% , the steepest in the last several years, during the 2008 fourth quarter. The crash has come as a shocker for even the most pessimistic estimates by analysts and bankers. The drop is primarily due to crashing consumer spending which is the backbone of US economy and also due to a steep decline in US exports.
The figures for the first quarter of 2009 is expected to be far more severe because the US economy is facing far steeper crash in its exports and also automobile sales are hitting all times lows, and banks are reluctant to lend to even top corporates, because no body knows who will file for bankruptcy when.