Yet To Come

The economic news was gloomy today. The GDP dropped into negative territory. Two of these negative quarterly puppies in a row and we are in an official recession.

The financiers are giving mixed messages on the meaning of the new GDP report. The range is quite noticeable. Some foresee a long drawn out recession lasting through 2009 and beyond, the more optimistic are pointing to the recent stock market rallies saying that the market always upticks before the country officially moves out of recession.

One thing we do know is that bad news sells.

This is how it works in the MSM. So the articles listed below all have basically the same headline, "The Worst Is Yet To Come." Yet they are roughly one and a half years apart.

One thing to gain from this is simply to be aware that drawing on bad economic news is a very good way to create a distressed emotional response in a large body of people. When we are in fear and distress, we are ripe for suggestions.

From October 30, 2008 - AFP: US economy shrinks in quarter, worst may be yet to come

The US economy contracted in the third quarter as panicked consumers slashed spending, data showed Thursday in the first downside leg of what analysts say could be a deep and nasty recession.

In its first reading of gross domestic product (GDP) in the July-September period, the Commerce Department said output of goods and services fell at a 0.3 percent annual pace amid a sharp retrenchment by consumers and businesses.

Citigroup's Steven Wieting said it could get even uglier: "Production and employment declines, credit tightening, and wealth destruction are clearly more severe in the current (fourth) quarter, which should show shrinkage in GDP in excess of the 3.0 percent decline posted in consumption last quarter."

From May 27, 2008 - Huffington Post: U.S. Economy: The Worst is Yet to Come

We are facing the prospect of millions losing their homes, their jobs, their retirement savings, their health insurance, and their livelihoods.

This serious economic situation greatly raises the stakes of the 2008 election. What will the government do to help the victims of economic mismanagement, to provide health insurance, and to restart the economy? Is it really more important to spend billions each week on the occupation of Iraq?

From June 20, 2007 - Bloomberg.com: The worst is yet to come for the U.S. housing market.