US economy shrinks at fastest pace in 7 years

[OhioChick]

Source: Reuters

26 Nov 2008, 0035 hrs IST, REUTERS

WASHINGTON: The US economy contracted at its fastest pace in seven years in the third quarter as consumer spending plunged to a 28-year low, data showed on Tuesday, raising the specter of a deeper recession.

Separate reports showed home prices continued their downward spiral, with the cost of single-family homes plunging to a record trough in September.

The data painted a dismal picture of the troubled economy and backed views the Federal Reserve could push benchmark lending rates to an unprecedented zero per cent by early 2009.

"We are in the early stages of one of the worst recessions in the post-war period, even factoring in a massive stimulus program,' said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts.

The grim reports overshadowed the Fed's announcement that it would use up to $800 billion to buy mortgage-related debt and consumer debt securities, and stocks on Wall Street surrendered early gains. US government debt prices rose, helped by a safe-haven bid fueled by the worsening outlook.


Read more: http://economictimes.indiatimes.com/US_economy_shrinks_...

[Double T]

1. No jobs, no paychecks, no consumer, no economy. It's that simple!

Jobs.... its GD jobs; jobs for American workers; not foreign slave wage nations that pollute and destroy the environment.

[OhioChick]

2. Bingo!

Nothing will change until Americans have jobs again, jobs that pay a living wage.

[Azlady]

3. Boy, you got that right Double T - Boy do you have that right n/t

[KillCapitalism]

4. Yep, jobs, jobs, jobs.

I hope Obama really starts bustin his butt on a jobs program.

[Skittles]

5. I wish he'd start by stopping outsourcing

yes INDEED

[OhioChick]

6. You and me both.

That would put many Americans back to work.

[Javaman]

7. disaster man*. nt

[4_TN_TITANS]

8. "one of the worst recessions in the post-war period"

Uhhh... Last time I checked we aren't in a post-war period, we're up to our necks in two wars.