Morgan Stanley Issues Full US Recession Alert! -- GOP will be blamed in '08

[Dems Will Win]

"WHO COULD HAVE ANTICIPATED IT?" - GOP IDIOTS!

You thought things were bad for the GOP? Just wait...

Morgan Stanley issues full US recession alert
By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 12:37am GMT 12/12/2007

Morgan Stanley has issued a full recession alert for the US economy, warning of a sharp slowdown in business investment and a "perfect storm" for consumers as the housing slump spreads.

In a report "Recession Coming" released today, the bank's US team said the credit crunch had started to inflict serious damage on US companies.

"Slipping sales and tightening credit are pushing companies into liquidation mode, especially in motor vehicles," it said.

"Three-month dollar Libor spreads have jumped by 60 to 80 basis points over the last month. High yield spreads have widened even more significantly. The absolute cost of borrowing is higher than in June."

"As delinquencies and defaults soar, lenders are tightening credit for commercial, credit card and auto lending, as well as for all mortgage borrowers," said the report, written by the bank's chief US economist Dick Berner. He said the foreclosure rate on residential mortgages had reached a 19-year high of 5.59pc in the third quarter while the glut of unsold properties would lead to a 40pc crash in housing construction.

"We think overall housing starts will run below one million units in each of the next two years -- a level not seen in the history of the modern data since 1959," he said.

Although the US job market has apparently held up well, an average monthly fall of 138,000 in the number of self-employed workers over the last quarter suggests it may now be buckling. "Consumers face what could be a perfect storm," said Mr Berner.

The partial freeze on subprime mortgage rates announced last week by US treasury secretary Hank Paulson may help cushion the blow for some banks, but it could equally backfire by adding a "risk premium" that drives even more lenders out of the mortgage market.

Like Goldman Sachs, and Lehman Brothers, the bank no longer believes Asia and Europe will come to the rescue as America slows.

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2007/12/11/cnusa111.xml

Please recommend if you want to help lower GOP percentages on November 6.

Oh -- and good luck, you're going to need it!

[displacedtexan]

1. That's a really nice shirt he's wearing.

I K & R-ed this post, btw.

Scary, but they knew this would happen. They just didn't think
anyone would blink so soon. They thought they could ride this out
until 2009 or 2010.

[Virginia Dare]

2. Just a recession, if we're lucky..

and I have no doubt this will be blamed on Democrats and consumers.

[enid602]

20. Just like with Carter

Carter was blamed for recession and stagflation, but both were caused by years of over-spending in Vietnam (without adequate taxation), and the need to shore up the by then failing dollar.

[EVDebs]

33. It's 1977 all over again.

From Nixon's plans to seize ME oil fields

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/01/02/MNG8G427D61.DTL

and the British said in that article we'd have to stay at least ten years (now, 2003-2013),

to the coming stagflation; falling value of the dollar and lack of manufacturing jobs -- with 'outsourcing' and 'privatizing' just beginning to decimate the economy back then.

We're in the identical situation. Reagan's low point was the worst recession since the Great Depression. This batch of neocons are out to best that record.

[NightWatcher]

3. look where the news came from, The UK!!!

the only news here is National Enquirer bullshit.

[Deja Q]

5. What are people more inclined to buy here?

[Zywiec]

12. Reuters has this...

Buffett Says U.S. Economy Close to Recession

NEW YORK (Reuters) - Billionaire investor Warren Buffett said the United States could slip into a recession if the jobless rate increases, he told CNBC television on Tuesday.

In a series of interviews throughout the day, Buffett, who built Berkshire Hathaway (BRKa.N: Quote, Profile, Research) into a $205 billion conglomerate, gave a sobering view of the economy's prospects, including the assessment that holiday retail sales were not looking good despite a post-Thanksgiving holiday burst.


http://www.reuters.com/article/bankingFinancial/idUSN1155908120071212

[peacetalksforall]

4. The TIme Machine. The Cheney Bush PNAC Baron Military Industrial Time Machine -

Ve Vill Always take you back.

Habeaus Corpus - we're back 1000+ years.
Housing - only 48 years.
Torture - who knows?
Serfdom - ????

The only think that is different is that in early Colonial times - the accused was held in a vice in the public square. Now it's all a secret.

Their guilty still go free.

[Hydra]

16. What's secret about it?

Torture and unlawful imprisonment used to be "conspiracy theory" material- it was happening, but no one would believe our gov't would do that.

Now, it is very much in the "public square." Right now, it's the demonized and undesirable...soon enough, it will be the random.

[peacetalksforall]

25. Go back - they attempted to keep it a secret - dungeons, windowless buildings on islands

and in coalition countries - no access, no representation, no lists.

Still secret.

Destroyed records and video - forever secret, possibly.

Closed Presidential libraries and archives.

Redacted black rectangles.

Still secret.

Tell ing Congress to go xxxxxx, to keep secrets from them.

[Hydra]

28. Ah, but there's the rub

notice now that there is no way of denying it...and how we are exposed to it little by little, given the justification that it was necessary, that "lives were saved."

Most all of what has been leaked could have stayed buried, but they opted to show us these things.

I think Bushco is sick of the secrecy. As they said in "A Few Good Men":

"Kaffee: I think he wants to say it. I think he's pissed off that he has to hide behind all this. I think he wants to say that he made a command decision and that should be then end of it.

He eats breakfast 300 yards away from 4000 Cubans who are trained to kill him. And nobody's going to tell him how to run his unit least of all the Harvard mouth in his faggoty white uniform."

They'd like nothing better than to proclaim that their word is law and to tell us all to sit down, shut up and go back to work- after all, they own an army with high-tech weapons and torturers...what are we planning on doing about it?

[Atman]

6. As long as you listend to Fox or Rush, everything will be okay.

In Foxland and Rushworld, rainbows are everywhere, the surge is working and everyone is gainfully employed in management (of Mickey D's, but hey, it's management!). Don't worry. Be happy. We report, you decide your own fate.

.

[progressoid]

7. As much as I dislike Carville....maybe it's time to revive his, "IT'S THE ECONOMY, STUPID"

[femrap]

18. I prefer 'It's the Rothschilds, Stupid.' nt

[Nikki Stone1]

8. I always got the idea that the neocons wanted to destroy home ownership for the masses

Home ownership represents a certain amount of independence for the average middle or working class person. The neocons want cradle to grave corporate control. The really do want serfs. Serfs don't own homes.

[Deja Q]

9. I thought they didn't want government at all?

[robinlynne]

10. They don't want government. It's all about corporations. Everything the government used to

do is now being privatized.

[Deja Q]

11. And they used to get elected by saying they'd run government like a business.

[kineneb]

14. oh? like Enron or WorldCom?

not shining examples, if you ask me.

Hubby worked for WorldCom...a bunch total f***-ups when it came to accounting. I could have done a better job. And the Rs want these people running a country? Ha!
:rofl:

[NewJeffCT]

21. Are you kidding? They love the government

It's a great tool for enriching their cronies - billions in tax breaks for Big Oil; tens of billions in subsidies for the big pharmaceuticals for the Medicare prescription drug bill; and the old standbys in the defense industry getting tens of billions as well.

[Nikki Stone1]

31. I don't think I mentioned government in my post, HypnoToad.

Can you tell me if there is something that might be unclear?

[fascisthunter]

46. They Want a "centralized" Government

that rules in favor of the wealthy and corporations. No country can survive without a government. That's a silly statement.

[femrap]

19. I believe the neocons want

everyone in debt...coming out of college, kids owe thousands so they must be good little obedient corporate workers. Then the 20-somethings start using the credit card for clothes, electronics, cocktails, etc. Being in debt is the new slavery! You must keep that job and do as you are told...so what if the corporation is screwing its customers and the public...the in debt slave must keep that job or end up on the street.

If you have debt, you cannot be free. Why do people want THINGS? Why are they willing to give up their freedom for THINGS? I guess Madison Ave. has done a great job at brainwashing.

[dysfunctional press]

38. i don't think that's true at all.

homeowners really do drive much of the economy, and they know it.

[Triana]

13. DEMOCRATS will be blamed in 09....

...and no doubt the GOP will try to blame them in 08 too. Nevermind that 7 years of Wingnut economic policy got us here.

[ChiciB1]

37. Many, Many Democrats SHOULD Be Blamed! Even Though They

weren't in control, so many just sat on their butts and went along without a fight! And if we knew the whole truth, we might find that many didn't WANT to do much because they had their fingers in the pie!!

There should have been some SERIOUS shouting going on whether they had the votes or not! Each time some bold Democrat DID stand up and say NO, very few other Democrats followed behind to help out and the few voices were made to SHUT-UP!!

My country right or wrong... Yeah, that's the American Spirit... as long as my palm gets massaged!

[robertpaulsen]

15. Blame the GOP for $120 oil in 2008 as well.

US Senate Panel: DOE Crude Stocks Fill Pushing Prices Up
Dow Jones
December 11, 2007: 07:24 PM EST

WASHINGTON -(Dow Jones)- A U.S. Senate panel Tuesday accused the Department of Energy of exacerbating a sharp rise in crude prices over the past year by filling the federal Strategic Petroleum Reserve at times of tight supply.

Sen. Carl Levin, D-Mich., chairman of the Homeland Security and Government Affairs Permanent Subcommittee on Investigations, said the DOE's plan to begin adding several million barrels to the SPR in January would take high-quality oil off the market just as the market is storing up for the spring and summer driving season.

Testifying before the committee, energy consultant Phillip Verleger said the DoE's plans could see prices pushed up to $120 a barrel. Front-month crude contracts on the Nymex closed above $90 a barrel Tuesday.

http://money.cnn.com/news/newsfeeds/articles/djf500/200712111924DOWJONESDJONLINE000864_FORTUNE5.htm

[Hydra]

17. Everyone will be blamed

the question now is whether we will be allowed an election(even rigged), or will a state of emergency be declared based on a major economic collapse?

[sakabatou]

22. But-but, everyone on the radio that I listen to

tells me that it's strong. Must be those Demoncrats!

[Perry Logan]

23. They won't blame the GOP. They'll blame Bill Clinton.

[flashl]

24. K&R n/t

[TrogL]

26. Don't be silly - the GOP never gets blamed for anything

They'll claim the Democrats refused to let them implement sound supply-side economic policy to clean up the mess caused by the Clinton administration.

[NewJeffCT]

27. Let's get our replies ready when Fox & CNN start blaming Democrats

for the recession. You just know they will.

and, the NY Post, Washington Times, etc.

And, Limbaugh, Savage, O'Reilly, Beck, Boortz, etc.

[spanone]

29. this may explain today's market....up over 200 points now over 50 down

[EVDebs]

34. ...after being down 294 just yesterday. We're treading water at nose level. nt

[CT_Progressive]

30. Don't worry, the market will fix it.

D'oh!

[Nikki Stone1]

32. Yeah, and there IS a Santa Claus...

and an Easter Bunny....

[Dems Will Win]

35. Plunge

[AX10]

36. I am not expecting a depression, but a deep recession (81-82).

Maybe large scale stagnation that plagued the US economy in the 1970's (75-79).

[Lost4words]

39. job market has held up well! My unemployed backside!

[Lost4words]

40. I hope the whole GD economy goes bust.

when CEOs are dropping out of the sky, it would be a good day for me.

If you think that is harsh, try living on nothing for 7 years!

[LynnTheDem]

41. DAMN that Bill Clinton!!!

It's HIS fault!!!

Really, as the world watches our total downfall into a broke devastated despised dictatorship, what else can one do anymore other than laguh.

Or cry.

[stillcool]

42. Time to bail out the banks...

[lovuian]

43. economics 101 You can't have 90% of a countrys assets owned

by a few
it causes Depressions

Economist know this
but ignored it for the Rich

so here we are in a major Recession heading for a Depression

in debt and war and a corrupt Congress and President and Supreme Court

Oh its bad people real bad

[whistle]

44. Heading for an economic meltdown and a financial implosion

...just like the images from 9/11 controlled demolitions of the Twin towers and WTC-7.

[fascisthunter]

45. IT WAS PLANNED! It's Called Economic Shock

to take over governments, giving corporations and the wealthy full reign.

"We couldn't anticipate it!"

BS. They are traitors.