U.S. officially in Recession since December 2007 according to NBER

December 1, 2008 by · Leave a Comment
Filed under: Economic News 

Well it is good for us to finally admit what most people without a P.H.D in economics have known for sometime.  You do not get a housing bubble to burst and a meltdown in the credit markets and not have a contraction in the economy.   The real question is, are we heading for a depression?  I think the verdict is still out but with each move to bail out failed companies, moves us closer by devaluing our currency and going against the basic free market principles.   Everyone loves the good times but want to do anything to prevent the bad times from ever coming.

News:

The U.S. economy entered a recession a year ago this month, the panel that dates American business expansions said today.

The declaration was made by the cycle-dating committee of the National Bureau of Economic Research, a private, nonprofit group of economists based in Cambridge, Massachusetts. The last time the U.S. was in a recession was from March through November 2001, according to NBER.

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Ex-Federal Reserve chief Paul Volcker says U.S. now in recession

October 14, 2008 by · 1 Comment
Filed under: Opinion 

Ahh, my hero ex-chairman Mr. Volcker. If only others would have the discipline you displayed to contain inflation.  I think if you talked to the average business person that you would agree we are in recession.   In the article he talks about some of the same issues that have been discussed here daily. We are looking too short-term in our goals for this financial crisis.

Many times the short-term gains you have, may not be worth the lasting long-term effects you cast on an economy. At some point we will have to deal with this debt, trade imbalance, credit creation/inflation and destruction of the middle class in the U.S. and not amount of credit will fix those problems. We have a system and culture that is not sustainable and will fall apart at some point in the future. It is good to take some punches on lip so you know what it feels like. The goal of life, atleast in my book is not to achieve ultimate convenience but to affect change and leaving life better than it was left to me.

Press Release:

Former Federal Reserve Chairman Paul Volcker said on Tuesday the U.S. housing sector faced more losses and the economy was in recession even as authorities moved to stabilize the financial system.

Volcker said the priority for U.S. authorities in the credit crisis was to stabilize the financial system even though that meant heavy government intrusion.

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IMF Says U.S. Faces `Sharp Downturn’ as Market Crisis Worsens

October 4, 2008 by · Leave a Comment
Filed under: Economic News 

Personally I think some of the commentary on our current economic crisis has not had what I would call “baseless optimism”. They have been warning people on our current situation and I believe I have not read any statements that have called for a premature end to our crisis but a more gradual modification of their outlook that looks to be more realistic compared to what is actually happening in the market. Today it was surprising that the bailout bill finally found the votes it needed to pass and the Dow Jones shed 157 points of its average. What was most frustrating was seeing our politicians keep saying the market was sending a message, what message is it sending now?

News Piece:

The U.S. may fall into a recession as the financial rout deepens, the International Monetary Fund said in its most pessimistic outlook for the world’s largest economy since the credit crisis began last year.

“The financial turmoil that began in the summer of 2007 has mutated into a full-blown crisis,” the fund said in a section of its semiannual World Economic Outlook released in Washington today. There is “a substantial likelihood of a sharp downturn in the United States,” the fund said.

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Japan’s economy shrinks in second quarter, recession on the horizon

August 12, 2008 by · Leave a Comment
Filed under: Economic News 

Japan’s economy shrank in the second quarter, the government said Wednesday, as slowing exports and waning consumer demand pushed the world’s No. 2 economy to the brink of recession.

Japan’s gross domestic product, or the total value of the nation’s goods and services, dropped at an annual pace of 2.4 percent in the April-June period, a marked downturn from a 4.0 percent rise registered in the January-March period.

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