ECRI : Risk of a Double Dip for US quite high

Achuthan, co-founder and chief operations officer of the Economic Cycle Research Institute, says all of his economic indicators point to more sputtering ahead.

"The risk of a new recession is quite high," he says.

If we do have a double-dip recession, Achuthan says, the people who are already having trouble finding work and paying bills are already in a depression and that they "are going to suffer more."

Check Achuthan and the ECRI’s impressive recession calls in recent years here

US fund withdrawals top $75 bn, Highest since lehman collapse

Investors have pulled more money from US equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings, adding to the $2.1-trillion rout in American stocks.

About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman's bankruptcy, the data show

via ET

Italy suffers downgrade

S&P cuts Italy's sovereign credit ratings by one notch to A/A-1, with a negative outlook., citing "weakening economic growth prospects" for the nation, and political gridlock in Rome.

Obama Unveils Deficit Plan

President Barack Obama called for $1.5 trillion in tax increases over the next decade, largely targeting the wealthy, to help trim the deficit, saying U.S. prosperity depends on paying down the federal debt.

 

In combination with cuts in spending, Obama said, his plan would reduce the long-term deficit by $3 trillion beyond the $1 trillion that was agreed to as part of a deal to raise the U.S. debt ceiling.

Via Bloomberg

Dollar Libor rate Climbs to highest in a year

The cost to borrow money in dollars remained at the highest level in more than a year on Monday while the rate to borrow euros was little changed. The London interbank offered rate, or Libor, for three-month dollar loans traded at 0.35133%, little changed from Friday and up from 0.34289% a week ago. The three-month Libor rate for euros was little changed at 1.48375%, near the highest since early 2009.

China ready to end dollar peg

telegraph.co.uk : The head of China’s central bank has given the strongest signal yet that the country will move away from pegging its currency to the dollar, but he said any changes would be gradual.

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