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The first 12 months of the U.S. recession saw the economy shrink more than twice as much as previously estimated, reflecting even bigger declines in consumer spending and housing, revised figures showed.
The world’s largest economy contracted 1.9 percent from the fourth quarter of 2007 to the last three months of 2008, compared with the 0.8 percent drop previously on the books, the Commerce Department said yesterday in Washington. Gross domestic product has shrunk 3.9 percent in the past year, the report said, indicating the worst slump since the Great Depression.
Consumer spending, which accounts for 70 percent of the economy, decreased 1.8 percent in last year’s fourth quarter from the same period in 2007, exceeding the prior estimate of a 1.5 percent drop. Purchases also began sinking sooner than previously projected, registering their first decline at the start of 2008 rather than in the second half.
The world’s largest economy contracted 1.9 percent from the fourth quarter of 2007 to the last three months of 2008, compared with the 0.8 percent drop previously on the books, the Commerce Department said yesterday in Washington.
Originally posted by Rockpuck
THE STOCK MARKET DOES NOT REPRESENT THE ECONOMY!
[edit on 8/1/2009 by Rockpuck]
Originally posted by silent thunder
reply to post by Rockpuck
Great post, topic OP, thanks.
I've heard it called a "Great Recession" before but I think before we finish we will definitely be in a true Depression. Unfortunately we don't have a president like Abraham Lincoln or Andrew Jackson at this juncture. You want to talk about "change" look to them because we are at a point in history where we need a president willing to make radical change. Jackson closed the Central Bank (equivalant to today's Fed) and basically enraged the bankers beyond belief. But he was too big a man to care. Result: 4 decades of relative prosperity.
Lincoln also acted contrary to the howls of the Bankers and created the Greenback.
We need an administraion and congress with the stones to make similarly radical moves. Simply close the Fed -- end central banking in America -- this is within the range of the President/Congress but unfortunately the office of the presidency has been turned into a simpering sock-puppetry for the Goldman Sachs Alumuni Societies (ie the Fed and the Treasury). Result: These scumbags are running the economy into the ground for fun and profit (mostly profit). Its more complex than that but you get the pic.
Even in the early 80s our Fed chairman was Vokler, who was willing to Jack interest rates close to 20%. He was heavily criticized for the extreme short-term pain but in the long run it convinced investors the govt was serious and it laid the groundwork for a 20-year boom.
This is the kind of bold, iconoclastic action we need. Close the ******* Fed. Frog-walk orange-jumpsuited CEOs on CNN. Enforce exisiting rights. Makes lawyers useful for once and start a class-action suit against various financial institutions. CUT THE PLANNED SPENDING TO THE BONE and arrange the very configuration of the govt to CUT PORK. Tax relief and incentives for small businesspeople.
Recession, depression... what does it matter anyway?
Originally posted by Rockpuck
There may be a shortage of credit and cash in the market, but there is still a large portion of the population unaffected or else, effected little enough to have expendable surpluses.
Under the Bush Administration, real GDP grew at an average annual rate of 2.5%,considerably below the average for business cycles from 1949 to 2000.
Bush entered office with the Dow Jones Industrial Average at 10,587, and the average peaked in October 2007 at over 14,000. When Bush left office, the average was at 7,949, one of the lowest levels of his presidency.
By October 2008, due to increases in domestic and foreign spending, the national debt had risen to $11.3 trillion,an increase of over 100% from the start of the year 2000 when the debt was $5.6 trillion.
In December 2007, the United States entered the longest post-World War II recession, which included a housing market correction, a subprime mortgage crisis, soaring oil prices, and a declining dollar value.