Featured Stories World News Commentary Money Watch Multimedia Prison Planet U.S. News Science And Technology

Economy Shrinks At Staggering Rate

  • Print The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Annys Shin and Neil Irwin
Washington Post
Saturday, Feb 28, 2009

The prospects for an economic recovery by year’s end dimmed yesterday, as government data showed that the economy contracted at the end of 2008 by the fastest pace in a quarter-century. The worse-than-expected data fueled doubts about whether the Obama administration had adequately sized up the challenges it faces in trying to pull the country out of recession.

Gross domestic product, a measure of the goods and services produced across the nation, shrank at an annualized rate of 6.2 percent in the last quarter of 2008, according to the Commerce Department, far worse than the initial estimate of 3.8 percent and the 5 percent most analysts were expecting. The downward revision means the economy began the year from an even weaker position than previously thought.

“The economy really doesn’t have any momentum going into the first quarter,” Wachovia economist John Silvia said. “To the extent the economy may have been weaker, then the impact of the stimulus would be more muted.”

(ARTICLE CONTINUES BELOW)

Economy Shrinks At Staggering Rate 335x205 graph128c aj

The Dow Jones industrial average tumbled 1.7 percent, or 119 points, capping a week in which stocks were battered by concerns that parts of the banking sector would be nationalized. Shares of Citigroup tanked 39 percent, to $1.50 after the government prepared to take a large ownership stake in the firm. Major indexes closed down about 4 percent on the week.

More than a year into the downturn, businesses are hunkering down. Technology and services conglomerate General Electric said yesterday that it would cut its annual dividend in July for the first time in at least 59 years to conserve cash and keep its borrowing costs as low as possible. Latham & Watkins, the nation’s fourth-largest law firm, said it would dismiss 190 lawyers and more than 250 paralegals and support staff.

 

Full article here

This article was posted: Saturday, February 28, 2009 at 5:56 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
Mystery Surrounds Weird 'Tree' Cellphone Tower in NC See the rest on the Alex Jones YouTube channel.

Obama Invades Africa Under Ebola Smoke Screen See the rest on the Alex Jones YouTube channel.

© 2013 PrisonPlanet.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.