|
Recession in U.S. May Be Just Beginning as Job Losses Mount
Steve Matthews and Timothy R. Homan
Bloomberg
Tuesday, Dec 02, 2008
The U.S. economy, now officially in recession, may
be in the midst of the longest slump in the post- World War II
era as job losses mount and credit dries up.
The economic slump began in December 2007 when payrolls reached
a peak, the business cycle dating committee of the National Bureau
of Economic Research, a private, nonprofit group of economists
based in Cambridge, Massachusetts, said yesterday. The last time
the U.S. was in a recession was from March through November 2001,
according to NBER.
“We’re going on 12 months already, and we’re
just getting started,” said Stephen Stanley, chief U.S.
economist at RBS Greenwich Capital in Greenwich, Connecticut.
“We’re looking at some pretty severe numbers for the
fourth quarter, and the first quarter of 2009 will be pretty bad
as well. The economy isn’t going to turn around definitively
until the credit markets unclog.”
(ARTICLE CONTINUES BELOW)
The NBER designation means the U.S. was the first country to
have slipped into a contraction. While definitions differ, the
economies of both the euro area and Japan fell into a slump in
the second quarter of this year, making it the first simultaneous
recession in the three regions in the postwar era.
The longest economic slumps since 1945 were the 16-month downturns
that ended in March 1975 and November 1982. The Great Depression
lasted 43 months, from August 1929 to March 1933.
“This may be referred to as the Great Recession,”
because of its length, said Norbert Ore, chairman of the Institute
for Supply Management’s factory survey. “It looked
like we were headed for a shallow recession earlier in the year
because of higher energy prices. With the meltdown in the financial
sector, it has become something more serious.”
Full
article here
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
