Re: OT - Bush Curse stalks the land...Economy shrinks at fastest pace in 26 years

On 28 Feb 2009 22:47:49 GMT, Curly Surmudgeon
<CurlySurmudgeon@xxxxxxxx> wrote:

On Sat, 28 Feb 2009 13:41:32 -0500, Observer wrote:

On 28 Feb 2009 04:16:15 GMT, Curly Surmudgeon <CurlySurmudgeon@xxxxxxxx>
wrote:

On Fri, 27 Feb 2009 22:51:06 -0500, Observer wrote:

On Fri, 27 Feb 2009 19:00:10 -0800 (PST), Too_Many_Tools
<too_many_tools@xxxxxxxxx> wrote:

On Feb 27, 3:33 pm, Observer <nob...@xxxxxxxxxxx> wrote:
On Fri, 27 Feb 2009 12:39:09 -0800 (PST), Too_Many_Tools

<too_many_to...@xxxxxxxxx> wrote:
More evidence that the experts are underestimating the
problem...and likely don't have a clue as to where the bottom is
yet.

Be sure to thank your favorite Republican for this unique
priviledge to live this historical event The Great Depression 2.0
when you are standing in the soup line in the future.

My favorite Republican is Ron Paul.  Kindly detail how he is
culpable for the economic meltdown.

I'll wait.

Soup lines?  Doubtful, when they can issue food stamps.





TMT

Economy shrinks at fastest pace in 26 years Economy shrinks at
faster-than-expected 6.2 percent pace in fourth quarter, worst in
26 years
Jeannine Aversa, AP Economics Writer
Friday February 27, 2009, 2:53 pm EST

WASHINGTON (AP) -- The economy contracted at a staggering 6.2
percent pace at the end of 2008, the worst showing in a
quarter-century, as consumers and businesses ratcheted back
spending, plunging the country deeper into recession.

The Commerce Department report released Friday showed the economy
sinking much faster than the 3.8 percent annualized drop for the
October-December quarter first estimated last month. It also was
considerably weaker than the 5.4 percent annualized decline
economists expected.

A much sharper cutback in consumer spending -- which accounts for
about 70 percent of economic activity -- along with a bigger drop
in U.S. exports sales, and reductions in business spending and
inventories all contributed to the largest revision on records
dating to 1976.

Looking ahead, economists predict consumers and businesses will
keep cutting back spending, making the first six months of this
year especially rocky.

"Right now we're in the period of maximum recession stress, where
the big cuts are being made," said economist Ken Mayland, president
of ClearView Economics.

On Wall Street, stocks were down slightly, but rebounded from
earlier lows as investors appeared to second-guess Citigroup Inc.'s
plans to turn over a bigger piece of itself to the government in a
move designed to keep the banking giant alive and bolster its
capital in the face of growing losses amid the global recession.
The Dow Jones industrials lost about 25 points in afternoon
trading.

The new report offered grim proof that the economy's economic
tailspin accelerated in the fourth quarter under a slew of negative
forces feeding on each other. The economy started off 2008 on
feeble footing, picked up a bit of speed in the spring and then
contracted at an annualized rate of 0.5 percent in the third
quarter.

The faster downhill slide in the final quarter of last year came as
the financial crisis -- the worst since the 1930s -- intensified.

Consumers at the end of the year slashed spending by the most in 28
years. They chopped spending on cars, furniture, appliances,
clothes and other things. Businesses retrenched sharply, too,
dropping the ax on equipment and software, home building and
commercial construction.

Before Friday's report was released, many economists were
projecting an annualized drop of 5 percent in the current
January-March quarter. However, given the fourth quarter's showing
and the dismal state of the jobs market, Mayland believes a decline
of closer to 6 percent in the current quarter is possible.

The nation's unemployment rate is now at 7.6 percent, the highest
in more than 16 years. The Federal Reserve expects the jobless rate
to rise to close to 9 percent this year, and probably remain above
normal levels of around 5 percent into 2011.

A smaller decline in the economy is expected for the second quarter
of this year. But the new GDP figure -- like the old one -- marked
the weakest quarterly showing since an annualized drop of 6.4
percent in the first quarter of 1982, when the country was
suffering through an intense recession.

"It's going to be a challenging 2009," Scott Davis, chief executive
officer of global shipping giant UPS, said Thursday while speaking
to the U.S. Chamber of Commerce in Washington.

American consumers -- spooked by vanishing jobs, sinking home
values and shrinking investment portfolios have cut back. In turn,
companies are slashing production and payrolls. Rising foreclosures
are aggravating the already stricken housing market, hard-to-get
credit has stymied business investment and is crimping the ability
of some consumers to make big-ticket purchases.

It's creating a self-perpetuating vicious cycle that Washington
policymakers are finding hard to break.

To jolt life back into the economy, President Barack Obama recently
signed a $787 billion recovery package of increased government
spending and tax cuts. The president also unveiled a $75 billion
plan to stem home foreclosures and Treasury Secretary Timothy
Geithner said as much as $2 trillion could be plowed into the
financial system to jump-start lending.

For all of 2008, the economy grew by just 1.1 percent, weaker than
the government initially estimated. That was down from a 2 percent
gain in 2007 and marked the slowest growth since the last recession
in 2001.

With Friday's figures, Mayland lowered his forecast for this year
to show a deeper contraction of just over 2 percent.

In the fourth quarter, consumers cut spending at a 4.3 percent
pace. That was deeper than the initial 3.5 percent annualized drop
and marked the biggest decline since the second quarter of 1980.

Businesses slashed spending on equipment and software at an
annualized pace of 28.8 percent in the final quarter of last year.
That also was deeper than first reported and was the worst showing
since the first quarter of 1958.

Fallout from the housing collapse spread to other areas. Builders
cut spending on commercial construction projects by 21.1 percent,
the most since the first quarter of 1975. Home builders slashed
spending at a 22.2 percent pace, the most since the start of 2008.

A sharper drop in U.S. exports also factored into the weaker
fourth- quarter performance. Economic troubles overseas are sapping
demand for domestic goods and services.

Businesses also cut investments in inventories -- as they scrambled
to reduce stocks in the face of dwindling customer demand --
another factor contributing to the weaker fourth-quarter reading.
The government last month thought businesses had boosted
inventories, which added to gross domestic product, or GDP.

GDP is the value of all goods and services produced in the United
States and is the best barometer of the country's economic health.

Fed Chairman Ben Bernanke earlier this week told Congress that the
economy is suffering a "severe contraction" and is likely to keep
shrinking in the first six months of this year. But he planted a
seed of hope that the recession might end his year if the
government managed to prop up the shaky banking system.

Even in the best-case scenario that the recession ends this year
and an economic recovery happens next year, unemployment is likely
to keep rising.

That's partly because many analysts don't think the early stages of
any recovery will be vigorous, and because companies won't be
inclined to ramp up hiring until they feel confident that any
economic rebound will have staying power.

More job losses were announced this week. JPMorgan Chase & Co. on
Thursday said it would eliminate about 12,000 jobs as it absorbs
the operations of failed savings and loan Washington Mutual Inc.
That figure includes 9,200 cuts announced previously and 2,800 jobs
expected to be lost through attrition.

The NFL said Wednesday that the league dropped 169 jobs through
buyouts, layoffs and other reductions. Textile maker Milliken & Co.
said it would cut 650 jobs at facilities worldwide, while jeweler
Zale Corp. said it will close 115 stores and eliminate 245
positions.

AP Business Writer Harry Weber in Atlanta contributed to this
report.

__

The last official act of any government is the looting of the
nation.- Hide quoted text -

- Show quoted text -

Unemployment is still low...that is changing..rapidly.

"Official" numbers in CA is ~10%. Is that low?

Yes, in two ways. 10% is lower than unemployment will be in the near
future. 10% is also low in comparison to reality. "Real" unemployment
is roughly twice that. If you include underemployment it rises to about
triple the official figure.

Soup lines could easily start again.

Food stamps are usually used by those who have a home....with a
mailing address.

Noted.

10,000 households a day now are being served foreclosure notices.

See a possible trend starting....

TMT

You failed to address:

My favorite Republican is Ron Paul.  Kindly detail how he is culpable
for the economic meltdown.

Yes, I'd like to hear that too.

TMT paints with a wide brush, and doesn't like being corrected. He also
is quick to dispense insults, should you disagree with his opinions.

You've got to admit that it's difficult not responding in kind to the
neocon attacks of the last 8 years. I constantly find myself self-
censoring a nasty rebuke to the pukes here who pushed the candidates,
politicians and programs that brought our nation to its knees.

Agreed. But YOU do manage to self censor. TMT will shriek "winger"
to folks that are not in lock step with his "opinions."



__

The last official act of any government is the looting of the nation.
.

Relevant Pages
Loading