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

U.S. Slump May Be Longest in Decades as Growth Fell Off `Cliff’

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

Bob Willis and Kristy Scheuble
Bloomberg
Wednesday, Nov 12, 2008

The U.S. downturn will be the longest in three decades, and the drought in consumer spending may be the worst ever, according to economists surveyed by Bloomberg News.

The implosion of credit markets last month will cause the economy to shrink at a 3 percent annual rate in the fourth quarter and decline at a 1.5 percent pace in the first three months of 2009, according to the median estimate of 59 economists surveyed Nov. 3 to Nov. 11. Following last quarter’s 0.3 percent drop, the slump would be the longest since 1974-75.

“The economy fell off a cliff in October,” said Richard Berner, co-head of global economics at Morgan Stanley in New York. “We had a huge financial shock that intensified the credit crunch and triggered a sharp downturn.”

(Article continues below)

U.S. Slump May Be Longest in Decades as Growth Fell Off `Cliff  161008pptv1

Declines in household spending will extend into next year as the worst financial crisis in seven decades forces employers to keep cutting payrolls on top of the 1.2 million jobs already lost this year. President-elect Barack Obama has said the U.S. needs a second economic stimulus package “sooner rather than later.”

The pace of contraction this quarter would be the worst since 1990. Berner is among economists projecting the current slump will also be the most serious in a quarter century as the lack of credit causes a reinforcing, vicious circle of declines in confidence, spending and hiring.

  • A d v e r t i s e m e n t

“All of these adverse feedback loops are working to reinforce the downturn,” he said. “At the moment, it looks like the deepest U.S. recession since ’81.”

Some members of the group that officially determines when U.S. contractions begin and end are even more pessimistic.

Full article here

This article was posted: Wednesday, November 12, 2008 at 11:57 am





Infowars.com Videos:

Comment on this article

Comments are closed.

Watch the News

FEATURED VIDEOS
Nanny State to Ban Toasters, Kettles & Hair Dryers! See the rest on the Alex Jones YouTube channel.

Obama Bypassing Congress to Sign UN Climate Change Deal 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.