Friday, August 24, 2007

Another Liquidity Addict?

Jim Cramer has found a new friend in Alan Mulally, the CEO of Ford. According the Financial Times, Mulally has come out calling for another liquidity binge to help get the U.S. economy through it current financial hangover. Alan needs to read the latest Economics Focus section in the Economist (discussed in my previous posting).

From the Financial Times:

Ford chief calls for Fed push on growth
The chief executive of Ford has joined calls for the Federal Reserve to stimulate the economy, saying the housing crisis and credit turmoil has made sustaining economic growth a ‘priority’. In an indication of the growing pressure on the Fed to cut rates, Alan Mulally said economic and credit conditions were a “big headwind” to his plan to turn round the carmaker, which last year lost $12.65bn.

“Something we are all concerned about is the macro-economy,” he said. “Especially right now in the US with subprime and [higher] fuel prices.”

Asked whether he backed a rate cut, Mr Mulally said: “It is a really important job to manage inflation and economic growth [but] focusing on economic growth appears to be a really important priority now.”

No comments:

Post a Comment