N.Y. Economist declares "We're in a recession. It's going to widen, it's going to deepen."

[Amerigo Vespucci]

U.S. Economy: Growth Rate Falls Short of Forecasts (Update1)

http://www.smh.com.au/ffximage/2006/05/08/bushfish_wideweb__470x341,2.jpg

By Bob Willis and Timothy R. Homan

July 31 (Bloomberg) -- The U.S. economy shrank at the end of 2007 and grew less than forecast in this year's second quarter, signaling that the country is in worse shape than investors had anticipated.

``We're in a recession,'' Allen Sinai, chief economist at Decision Economics Inc. in New York, said in a Bloomberg Television interview. ``It's going to widen, it's going to deepen.''

The economy may weaken further as the temporary boost from tax rebates, which aided a pick-up in gross domestic product last quarter from the previous three months, fades. Stocks and the dollar dropped, Treasuries rallied, and traders reduced bets that the Federal Reserve will raise interest rates this year.

``This confirms the general picture of weakness, but it is surprising that GDP declined,'' said Martin Feldstein, who headed the National Bureau of Economic Research until June and serves on the group's recession-dating panel. He added that today's figures underscored his estimate that a downturn began in December or January. The last time the economy contracted was in 2001.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aW9BoDQLVQ9I&refer=home

[SpiralHawk]

1. "Shock and awe, baby. Smirk." - Commander AWOL & republicon homelander cronies

[ixion]

2. widen + deepen = depression

get ready, kids... it's going to be a rough ride.

[valerief]

4. The economy will soon be spread eagle. nt

[valerief]

3. What the hell good are economists? They either lie or tell us what we already know. nt

[Warpy]

5. I was just about to post that

their jobs are to maximize paper profits for the wealthy and, failing that, to justify a drop in those profits after it has happened.

[valerief]

6. Great minds think alike. nt

[JDPriestly]

7. Unemployment of over 500,000 anticipated -- and that's just the official number

Initial claims for unemployment insurance jumped by 44,000 to 448,000, the Labor Department said today. The department tomorrow may say payrolls declined by 75,000 in July, bringing total job losses so far this year to over 500,000.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aW9BoDQLVQ9I&refer=home

The only thing growing is unemployment.

McCain suggests that trade is essential to growth. Growth of what? Unemployment?