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Retailers, consumers and prices

Check Out Line: A truly depressing forecast

January 15, 2009

Check out this cheerful forecast form Societe Generale. FINANCIAL/HOLIDAYS
 
The French bank’s cross asset strategist, Albert Edwards, said the U.S. economy is likely to enter a depression. Oh, and look out for a global trade war with China.
 
For retailers reeling from the worst holiday season in four decades, the forecast cannot be welcome.
 
Edwards predicts the S&P 500 is set to fall another 40 percent from recent levels.
 
But there could be another problem looming, he wrote in a research note.

“It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan. A subsequent trade war could see a rerun of the Great Depression,” he said.
 
There you have it. Happy New Year.
 
Also in the basket:
 
Black Angus Steakhouse parent files for bankruptcy
 
Circuit City still in talks over potential sale
 
Deal-form-hell award to Landry’s (New York Times DealBook)

(Photo: Reuters)

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