US faces worst recession in 26 years

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The US economy appears to be plunging into what many experts believe will be its worst recession since 1982.

...

“The actual deterioration in the data in the last few weeks has been much more severe than anyone was expecting,” said Frederic Mishkin, a professor at Columbia university and former Fed governor.

Consumers, who account for 72 per cent of the US economy, are pulling back amid a brutal tightening of credit conditions on everything from car loans to credit cards and home equity lines. Meanwhile, foreign demand is also weakening.

Alan Blinder, a professor at Princeton and former Fed vice-chairman, said: “It looks to me like the economy has fallen off a cliff.”

He said it was all but certain the US would face a recession worse than in 2001 or 1990-1991.

“The game is now about making sure this recession is less deep and less long than the 1982 recession.”

Many experts expect unemployment will soar from its current level of 6.1 per cent and worry it could go above 8 per cent.

http://www.ft.com/cms/s/0/232eb4de-9e20-11...?nclick_check=1

[Pinocchio Liberal 268]

CPR! AJ!

[SpiritAlight 1]

You know what I'm super excited about?

Super duper??

I am excited that people may actually stop shopping.

That is ground breaking news my friends*.

*thought I'd borrow that from John