AP: "Is a Recession on the Way?"

[Glenda]

Underlining is by me.

http://hosted.ap.org/dynamic/stories/R/RECESSION_WATCH?SITE=FLMYR&SECTION=HOME&TEMPLATE=DEFAULT
Jan 21, 3:05 PM EST
By DAVE CARPENTER
AP Business Writer

Whether an actual recession is on the way - or already here - U.S. consumers and businesses are being increasingly squeezed by a downturn that threatens to spread the pain being felt everywhere from the gas pump to the unemployment line.
...

In the last recession, in 2001, investors took the biggest hit from collapsing technology stock prices. This time, consumers may bear the brunt of the pain as rising inflation and sky-high energy prices boost daily living costs uncomfortably.
...

The question now: How bad will it get?
...

One potential scenario, built from precedent, recent corporate developments, economic indicators and interviews with economic and business experts:

• Consumers will continue to pull back, with troublesome results for retailers and companies. Housing prices, which have fallen an average of 8 percent nationwide and as much as 40 percent in some markets since peaking in 2005, will drop for another year or so.
  
  
• Unemployment could climb another two percentage points to 7 percent, which would be the highest in 16 years and leave another 3 million Americans out of work. And stocks could keep dropping.
  

...

Americans are clearly spooked by the current prospects of the economy. Consumer confidence sank to the lowest level in at least six years this month, according to the RBC Cash Index, amid growing worries about jobs, energy bills and home foreclosures after the unemployment rate rose to a two-year high of 5 percent in December.
...

Consumer spending, which fuels a majority of the economy's output, has slowed dramatically in recent months, as was evident in the unexpected 0.4 percent slump in December retail sales reported by the government on Jan. 15.

The article then goes on to say that the analysts have widely different levels of gloominess or optimism. So no real conclusion.

[muntrv]

1. You mean we've had a boom the last 7 years?

[marmar]

2. The AP, on top of things as usual......

:sarcasm:

[Yael]

8. It is intentional

They need to get their monied interest out and they do that by telling the day traders to hold out just a smidge longer -- that it "isn't here QUITE yet".

[iamthebandfanman]

3. its here! has been for a while too

just being downplayed so there for it hasnt turned into a complete depression.

[Glenda]

6. I did think their title was odd...

as if the author was pointing out how crappy everything was, and maybe his editor made him change the title? :shrug:

[Fresh_Start]

4. absolutely not

its already taken up residence in many of our homes

[Yael]

9. Great minds and all that.

Sorry, didn't see this before I ranted. I saw the article and started seeing red. What utter bullshit.

[Jackpine Radical]

5. Is winter on the way?

[Yael]

7. No, it isn't on the way

It moved the fuck in and finished unpacking before the Christmas eggnog was room temperature.

You gotta love the bulls.

Old story from the 1920s. Henry Ford was in an elevator and the elevator guide told him about 'hot stock tips' that he had gotten. Ford immediately went to his hotel room and called his dealer/broker and said to sell everything. Logic he gave was that when the guy on the street was getting "advice", then it was already too late and the bargians had been had.

These fuck-heads playing this off are holding out until all of the big boys sound the clear-horn and then they are going to tell Joe Investor that "it is almost here".

[XboxWarrior]

10. I want my stupid $800....

before I die......

What a tool at economics.

Sure, we are heading for a huge drop.

I just want my $800 before I file for bankruptcy?

[Justice Is Comin]

11. On

the way?? :rofl: Have you talked to Sears yet?