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Recession watch

recession

The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.”

It was only a few weeks ago that most analysts were still saying there would be no recession. Blogs like Calculated Risk, Mish’s Global Economic Trend Analysis, The Big Picture were way ahead of mainstream financial news media in accurately reporting the financial devastation triggered by subprime.

Merrill Lynch and Citigroup are expected to write off “tens of billions,” a number that keeps growing, when they report earnings this week. No one really knows how much more of this toxic debt is out there. This is one reason that interbank lending rates have risen sharply, no one trusts the financial stability of any one else now.

  • RICARDO LAFAIRE

    RECESSION: WE ARE DEEPLY INTO ONE HAVE TO SEND A SPECIAL THANX, TO ALL THOSE RIGHT WINGER VOTERS FOR ELECTING BY FAR THE MOST INCOPETENT PRESIDENT IN THE U.S. HISTORY.
    REPUBLICANS SHOULD BE ASHAME OF THEMSELF FOR A LACK OF VISION! ONLY A VERY FEW PEOPLE ARE PROFFITING OUT OF THIS MORON PRESIDENT WHILE ALL THE REST, ARE CRYNG . THUMPS UP
    FOR MIDLE AMERICA, RIGHT WINGERS AND EVANGELICANS FOR ALLOWING THIS COUNTRY TO GO TO THE TRASH! LOOK AT THE CANADIAN DOLAR
    BETTER THAN THE AMERICAN WHERE IS THE OUTRAGE AND THE BRAINS AND DIGNITY? ALL THOSE LOSERS THAT CRUZIFIED CLINTON FOR THE LEWINSKI GATE ARE NOW QUIET AND PAYNG THE PRICE, FOR THIS JESUS FREAK, HAPPY NOW?
    HOPE THE NEXT TIME WE ELECT AN A+ STUDENT FOR PRESIDENT AND BRING THIS COUNTRY BACK OUT OF REACH FROM O’RREILLY,AND ALL A.M. RADIO TALK LOONY’S

  • DJ

    If only the Dems had had some vision. Kerry was the best they had to offer? Oh, for an election whose theme is not “Vote for me because the other guy is worse!”