Philly Fed index hints 'deep' recession in the cards

Philly Fed index hints 'deep' recession in the cards

www.financialpost.com

Economists are no longer talking about a U.S. recession but a deep recession after figures yesterday showed business sentiment continued to plummet in early February.

Forecasts for a more severe retreat came as CIBC World Markets predicted U.S. house prices would end up sliding 20% before the dust has settled on the American housing meltdown. CIBC estimated 50% of U.S. homeowners who took out below-prime mortgages in 2006 will end up in a negative-equity position -- owing more than their house is worth.

"There seems to be a sense of a very deep-seated collapse in the economy," said Michael Englund, chief economist at Action Economics.

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They may as well start using the "D" word...This isn't going away any time soon. Looks like the Decider's stimulus package didn't do much to sway economists. Now along with the disastrous housing market, manufacturing activity is in total free-fall. Not good

www.financialpost.com
(visit the link for the full news article)