(GuruFocus, June 29, 2009) Wibur Ross, chairman and CEO of WL Ross & Co., was interviewed by CNBC Monday. Here are the notes:
1. Wilbur Ross does not know which industry will lead the economic recovery.
2. The consumer still has not been rehabilitated. Saving rate is up that is a good thing long term, but and that is big problem halting the return to growth . If Saving rate goes to 8 to 10 percents, it will be a real problem for economic recovery.
3. Term-Asset Backed Securities Loan Facility (TALF) program as it expires in coming months should be renewed.
4. Liabilities are being shifted from an overleveraged consumer to the government, we are heading to France Model.
5. The housing market certainly hasn't stopped going down. And to me, the $6 trillion destruction in people's net worth, in and of itself, is a big deterrent to spending. The banks are still not making loans.
6. On the positive side, asset-backed commercial paper market has been partly rehabilitated.Â
7. Economic recovery won’t happen until well into 2010.
Here is the video clip:
1. Wilbur Ross does not know which industry will lead the economic recovery.
2. The consumer still has not been rehabilitated. Saving rate is up that is a good thing long term, but and that is big problem halting the return to growth . If Saving rate goes to 8 to 10 percents, it will be a real problem for economic recovery.
3. Term-Asset Backed Securities Loan Facility (TALF) program as it expires in coming months should be renewed.
4. Liabilities are being shifted from an overleveraged consumer to the government, we are heading to France Model.
5. The housing market certainly hasn't stopped going down. And to me, the $6 trillion destruction in people's net worth, in and of itself, is a big deterrent to spending. The banks are still not making loans.
6. On the positive side, asset-backed commercial paper market has been partly rehabilitated.Â
7. Economic recovery won’t happen until well into 2010.
Here is the video clip:
