SCOM: Flu Season Could Provide Revenue Opportunity
Submitted By Knobias ClipReport
Monday’s session was met with optimism regarding Wednesday’s Federal Reserve meeting scheduling. Many were expecting a cut of 25 basis points on the interest rate but as much as many would want lobby against it, a 50 basis point cut is not out of the realm of possibility.
Many feel the need for an aggressive stance especially with the Fed in a position to thwart a worst case scenario. The housing sector is now at the root of three distinct but related problems: (1) a sharp decline in house prices and the related fall in home building; (2) a subprime mortgage problem that has triggered a substantial widening of all credit spreads and the freezing of much of the credit markets; and (3) a decline in home equity loans and mortgage refinancing that could cause greater declines in consumer spending. Each of these could by itself be powerful enough to cause an economic downturn.
