In the article, “With Wall Street Slowing, Uncertainty Descends” the main focus is how the steady growth of the economy in New York has stalled. Many of the biggest firms on Wall Street have begun to struggle and more and more banks are making job cuts and their profit has gone down. The chief executive of Bank of America has even talked about how his company is no longer expanding like they had planed because they had huge losses in the last three months. The economy has had a steady growth for the last three years but now people are starting to realize that the growth is in the past. The Chief economist, Frank Barconi, in the comptroller’s office says he is “not sure whether the troubles in the financial markets will turn into something worse than we were predicting.” Major investment banks have already gotten rid of over 1,000 jobs and people are expecting more. Also financial firms in New York have made job cuts of 42,404 this year. While New York may become one
of the weakest economic places in America people are not sure that they will go into a total recession. One of the main questions is are major financial firms going to be able to keep their cost cutting under control or are more and more jobs going to be lost? Why has the economy slowed down? How much worse will the slowdown in Wall Street get or is it just a temporary lapse in economic growth?
2 comments:
I found this article very interesting. I was aware of the decline of business on Wall Street but wasn't aware of the severity of it. I was definitely not aware of all the job cuts and profit loss for major companies. I think young people, including myself, tend to overlook the economy and what is happening in the stock market. However, I think it is important because it is will affect us all in one way or another. I also think the economy will play a role in the upcoming 2008 election, especially if it continues to decline. Since I do not know much about Wall Street I am not sure how to predict what will happen but can only hope, as many, it will bounce back.
The issues in the article are very interesting. There are always times that Wall Street has its good and bad days, but this is a severe situation. The economy problems will do a lot to our society. Trouble in the market never is good news. It will cause a lot of frustration and it hurts the economy. The economy will have an impact in the presidential elections because it is doing so poorly. Hopefully everything will make a turn for the best and start to rise again.
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