Anatole
01-03-2007, 08:14 AM
By the end of 2006, Wall Street had every reason to celebrate. A second-half rally propelled the stock market to its best year since 2003. Companies reported strong profits, and some, like oil producers and investment banks, had record-shattering earnings.
Yet the year had a more precarious beginning. Worries were rampant that a slowdown in housing would hurt the overall economy and that the Federal Reserve would raise interest rates and stall growth. But the economy proved resilient, withstanding a housing slump. The Fed halted its campaign for higher interest rates. Profits accelerated, and there was a huge wave of mergers and acquisitions.
Nonetheless, Wall Street economists are looking at 2007 with some caution. They expect at least some slowdown in economic growth. And many worry that housing’s slump will spread to other corners of the economy.
http://www.nytimes.com/2007/01/02/business/02wall.html?_r=2&ref=business&oref=slogin&oref=slogin
Yet the year had a more precarious beginning. Worries were rampant that a slowdown in housing would hurt the overall economy and that the Federal Reserve would raise interest rates and stall growth. But the economy proved resilient, withstanding a housing slump. The Fed halted its campaign for higher interest rates. Profits accelerated, and there was a huge wave of mergers and acquisitions.
Nonetheless, Wall Street economists are looking at 2007 with some caution. They expect at least some slowdown in economic growth. And many worry that housing’s slump will spread to other corners of the economy.
http://www.nytimes.com/2007/01/02/business/02wall.html?_r=2&ref=business&oref=slogin&oref=slogin