Economy faces recession, probably in Q1

[UpInArms]

Source: Reuters

NEW YORK (Reuters) - The U.S. economy has ground to a halt and probably already is in recession but faces higher inflation this year than thought just a month ago, a Reuters poll showed on Wednesday.

A dismal run of economic data including two months of job market contraction, a declining factory sector and shrinkage in the dominant service sector, has led analysts to downgrade the already grim economic assessment they gave a month ago.

Economists made their forecasts before the Federal Reserve and other central banks teamed up on Tuesday to get hundreds of billions of dollars in fresh funds to cash-starved credit markets, allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.

The latest poll, taken March 7-12, also reaffirmed the disturbing trend set in motion last year of higher median inflation expectations for 2008 even as growth forecasts take another hit.

Read more: http://www.reuters.com/article/topNews/idUSL1145317920080312?sp=true

[Kelvin Mace]

1. The economy has been in recession the entire Bush administration

but since only the poor and middle class suffered, no one noticed.

[Warpy]

2. Damn, these smart economists are slow on the uptake

Read the "Economy" board here to find out when the collapse in hedge fund funny assets happened and how long working people have been living in a recession.

The fat cats are going to discover once again that getting everything their own way means shutting down the money pump as the people they stiff on the bottom spend so much servicing their debt that they can't afford to spend on consumer shit any more.

If you want to know where Depressions come from, follow the debt. When people substitute debt for adequate wages, all hell breaks loose. When wealth is concentrated at the hoarding level, at the top, the money pump shuts down and we get a vicious cycle of unemployment fueling low spending fueling unemployment. When people have to spend the bulk of their income paying minimum debt payments, the only other thing they can afford is food.

That's exactly where we're heading right now.

[PSPS]

3. Yet another public bailout for bush and his cronies

... allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.

In other words, you and I just bought these joke mortgages. This will be a massive multi-trillion-dollar bailout of bush's cronies.

[1trackmindGOP]

7. No..You did!

All these interest rate cuts and bank bailouts only sinks the dollar more and you are going to pay the price at the check out counter...thanks Bernanke.

[Political Heretic]

4. The 2008 president, in addition to helpful policies will benefit from the natural economic cycle

It's likely that a recovery will be in the words during the 2008-2012 term. The strength of that recovery will be based in part on the policies of the administration, but it could be a very favorable thing for a democratic president looking to be reelected in 2012.

[OhioChick]

5. This is one of those headlines

where you read it and the first thing that comes to mind is: No shit. :)

[1trackmindGOP]

6. Just now realizing this? or just now willing to confess!

I think many Americans have been living in a recession for many years, unfortunately, it just keeps getting worse. Where's the beef, oh yeah can't afford it...better go for hotdog.

[Doctor_J]

8. They've probably just figured out a way to blame it on Bill Clinton

or make it go away in 1/2 news cycle