Financial Conditions Are At Their Weakest Level Since Lehman

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Friday, September 23, 2011 Financial Conditions Are At Their Weakest Level Since Lehman When you put together all the variables -- credit conditions, corporate bond spreads, interest rates, stocks, home prices and more  -- the macroeconomy is in really poor health. Societe Generale's Financial Conditions Indices (FCI) are currently at their weakest levels since the collapse of Lehman Brothers. At current levels FCIs act as a 1.1 percent drag on euro-area GDP and 1.5 percent on U.S. GDP over the next four quarters. SocGen analyst Michala Marcussen says next week could see some improvement in FCI levels if European officials ratify the European Financial Stability Facility. For real improvement though, markets need a solid policy to deal with sovereign contagion, boost resilience in the global financial system and reassure investors that policymakers are committed to the stability of the euro area. Note: The two FCIs are not directly comparable and do not suggest that there is more stress in the U.S. at the moment than in the euro region. Read » Also On Money Game Today: CONFIRMATION: Dollar Is Rapidly Becoming The Next Safe Haven UBS: Talbot's Doesn't Have Any Leadership Or Brand Vision European Governments May Accelerate Plans For Permanent Bailout Fund 3 Questions Central Banks Should Answer Before Intervening In Currency Markets Advertisement CHART OF THE DAY: On Those Massive Funding Needs Of European Banks CHART OF THE DAY: The Best News On Housing CHART OF THE DAY: Why The Jobs Recovery is Different This Time Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.careerrrwyld@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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