Here's another crap article for you to insult and ignore...I hope the thinking participants of the thread give it a read.
chicago.tribune.com
Stock market volatility, still at yellow-alert levels, further pushes down bond prices and pushes up their yields. Until that volatility subsides, experts say, corporate bonds are moving targets.
In response, businesses are cutting back on capital spending forecasts, according to a survey released Friday of 105 members of the National Association of Business Economists. Although most observers have been predicting an economic slowdown, this could be the beginning of a vicious cycle that leads to a much more dramatic downturn.
The percentage of firms reporting falling capital spending in the third quarter was the highest since 1992, at 21 percent, up from 7 percent in the second quarter, the survey found. Forecasting the next six months, about a quarter expect to cut spending.
"Capital spending plans are under pressure as companies see slower revenue growth and a squeeze on profits," said Richard Berner, president of the economists group and chief economist at Morgan Stanley Dean Witter. "Marginal borrowers won't get the financing they thought they would. This is going to put the brakes on economic activity |
