The official announcement of a recession in the US apparently would not come for as long as 2 years from now. This report on a recession is derived by Merrill Lynch.
Regardless of who wins the Presidential election, that person is walking into a minefield. One suspects that a Democratic President will face a huge trial with regard to improving economic problems and the war in Iraq. Many of these problems exacerbated and greatly expanded by Bush II.
It is important to remember that the neo-conservatives will be reconfiguring and waiting in the wings for their next opportunity to direct American policy as they have with Bush II.
From the BBC: Recession in the US 'has arrived'
The feared recession in the US economy has already arrived, according to a report from Merrill Lynch.Recession - a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
It said that Friday's employment report, which sent shares tumbling worldwide, confirmed that the US is in the first month of a recession.
Its view is controversial, with banks such as Lehman Brothers disagreeing.
The causes of recession
The precise causes of recession are the subject of fierce debate among academics and policy makers although most would agree that recessions are caused by some combination of endogenous cyclical forces and exogenous shocks. For example, Keynesian economists and Real business cycle theorists would all disagree about the precise cause of the business cycle breakdown, but most would agree that purely exogenous factors like the price of oil, weather conditions, or a war could by themselves cause a temporary recession, or, conversely, increase short term economic growth.
2 comments:
The cause of RECESSION? GREED and GOP WAR looting. The fucking GOP has emptied the treasury and will now whine for even more tax breaks for the same class of Corp Pirates and vandals that brought on this robbery. I feel sorry for OBAMA he'll be walking into the next Great depression the way things are going. Worse it will be a Great STAGFLATION. Prices for FOOD, FUEL, MEDICAL CARE will increase as the dollar declines and collapses. Everything else will deflate including the ability for whats left of the economy to produce jobs. The Wal-Martization of America will be complete. Masses of lo-paid hrly temp. workers with no benefits. POTTERVILLE !!
Not a pretty picture...
The cruel and poignant thing of it is, if you simply look at the state of the country, it needs tremendous work. Roads and houses falling into decay, infrastructure on the decay - Its not like there isn't work that needs to be done and people needed to do it and organize it and plan it.
The potential is there but the structure is so mucked up it can't happen.
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