In the US, where the credit crisis
started, it is now literally survival
of the fittest in financial markets.
Amidst this turmoil, Rabobank
is doing rather well, thanks to
the triple A rating and a thoughtful
strategy.
Similar views are shared within Rabobank in North America.
'The US economy is certainly nearing the bottom and we
are starting to see some signs of improvement," comments
Bob Bucklin, Chief Corporate Banking Officer of North
America, at Rabobank International's head office in New
York. "I do not know if we are going to have another relapse,
but I do think the recovery will be long and slow. Some
major indicators are still pointing in the wrong direction.
Unemployment is not decreasing, consumer incomes are
not growing and consumer demand is tepid."
And at the West Coast, the outlook is clouded, too,
according to Ronald Blok, CEO Rabobank of North America.
"California has had a booming economy for decades, so it is
no wonder that a crisis would hit this region harder. House
prices have gone down dramatically: 35% to 50% in two
years. But now the first signs of stabilisation are visible."
One sign that the worst may be over is the renewed
confïdence in the banking sector itself. "American banks are
quickly becoming aggressive again," observes Bob Bucklin.
'They are still being very price conscious, but I see more
commercial banks re-entering the market rather quickly.
We notice banks are willing to use their balance sheet
in ways they wouldn't have six months ago."
issue 21 icronr.R THE WORD 2 5
The world's economy is starting to recover, according
to a paper published in mid-August by the International
Monetary Fund's chief economist, Olivier Blanchard, but it
will be a slow and complicated process. 'The world is not
in a run-of-the mill recession. This turn-around will not be
simple.The crisis has left deep scars, which will affect both
supply and demand for many years to come." Yet France
and Germany have returned to growth, and recently Japan
joined the group of growing economies. The UK, however,
is still struggling with a weakened pound, and the US is
trying to find its way up.
