17 September 2008 21:48 [Source: ICIS news]
By Joseph Chang
"I'd like to say the worst is past us, but it's impossible to put lipstick on this pig," said senior economist Scott Anderson at the Chemical Purchasing Summit, organised by ICIS and Purchasing magazine.
"The credit crisis is like an uncontrollable forest fire, with the future direction and potential damage to the
The global credit crisis and volatility in stock markets "could temporarily disrupt M&A activity and add risk to existing deals," he said. "However, conditions are ripe for further consolidation of the chemical industry with manufacturing customers also getting larger."
Housing starts fell 6.2% in August to an annual rate of 898,000, the fewest since January 1991. Building permits fell 8.9% to a pace of 854,000.
However, troubling signs for the
"The labour market is likely to get sicker, even after nine consecutive months of job losses, and household debt is at record levels," he said. "That's bad news and will intensify the credit crunch as banks revise up losses from mortgage defaults and credit cards."
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