| American consumers prove a keystone for the global economy
Not long ago, many experts were convinced that a vibrant world economy would prevent an American recession. Even if the beleaguered American consumer suddenly turned thrifty, they reasoned, healthy spending on other shores was supposed to keep the expansion rolling. But now, with the turmoil in financial markets resonating around the world, those same experts see signs that economic growth abroad will probably not be strong enough to prevent the United States from slipping into a recession. Indeed, the very global interconnections that many thought might spare the United States now appear to be working in reverse: American consumers will pull back from their exuberant spending, cooling demand for goods worldwide, dragging down the global economy. This could in turn stifle foreign demand for American goods.
Calls grow to probe Suharto scams
But it doesn't mean the law works like that". Suharto's 32-year tenure as leader of the world's most populous Muslim nation was marked by repression, from the killings of at least half a million communists and their sympathisers after the abortive coup that saw him seize power in 1966, to invading East Timor and quelling separatist movements in Aceh and Papua. Emerson Yuntho, from International Corruption Watch, said: "Suharto's dead, but the process of law may not be stopped - because the parliamentary order which accused him also specified that his family and cronies must be investigated. If we think of thissituation as being like a train, and Suharto is the locomotive with all the corrupters the carriages, now that he's gone they'll be saying, 'Now what? He didn't get touched.
Stimulus deal promising; housing risks still plentiful
Analysts are currently trying to decide if interest rate cuts and a stimulus packages will help or hurt.
Mark Zandi, of Moody's Economy.com, sees Fed cuts and Washington's proposed tax rebates as a step in the right direction. Consumers with mortgages about to reset to new rates might now be able to hold onto affordable rates rather than facing payments they cannot tolerate. That should keep people from losing homes and pouring more houses for sale into an already glutted market.
Meanwhile, consumers may have lower interest rates on everything from credit cards and car loans to home-equity lines of credit and college student loans. But lenders are monitoring credit histories closely, so those who have overindulged may not find relief.
And the housing mess that's been weighing on the economy and stock market is far from over.
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