Money – Former U.S. Federal Reserve Chairman Alan Greenspan on Thursday said the U.S. economy is "clearly on the edge" of a recession.
Current Fed Chairman, Bernanke, seems to disagree about the recession. In a Senate banking committee meeting yesterday, he said that while there has been considerable strain in markets, a softened labor market and a deteriorated housing market, there is no recession and he forecasts a strong pace of growth later this year. Treasury Secretary Paulson said that the housing situation is a correction and not a crisis.
I assume that neither is among the thousands having their homes foreclosed this year.
Bernanke had many "but ifs" in his testimony
Here is a fairly good article:
Bernanke Warns of Worsening Economy
Using words like "sluggish" and "deteriorated," Federal Reserve Chairman Ben Bernanke gave a starkly pessimistic assessment of the nation's economy
Bernanke said that in his own economic forecast he did not predict a recession but a period of sluggish growth "followed by a somewhat stronger pace of growth starting later this year" as the impacts of the Fed's rate cuts and the $168 billion economic stimulus package of tax rebates begin to be felt.
However, he also said there were significant downside risks ranging from the threat that the housing slide could become even more severe, the job market could deteriorate more than currently expected or that the credit squeeze will intensify.
Is the party over in China? Massive unemployment looms
China watchers are predicting a drop in the GNP growth rate this year and for the foreseeable future. Most are attributing the expected fall off this year from last year's official 11.4 percent, the fifth year in a row of double digit expansion to the expected downturn in the U.S. and the world economy in general.
http://www.worldtribune.com/worldtribune/WTARC/...
US Subprime Crisis Costs Global 7.7 trillion Dollars
The meltdown in the US subprime real-estate market has led to a global loss of 7.7 trillion dollars in stock-market value since October, a report by Bank of America showed Thursday.
Russia will be the true power house in 10 years or so. It covers 11 TIME ZONES, may include 40% of the world's supply of raw materials including oil and gas, and has a population of 145 million (half the population of the USA)
China and India are already over-populated and will never be able to overcome this.
I don't have a PHD (Piled Higher & Deeper) in economics, but I have been out in the real world long enough to know that when outgo exceeds income for several periods it is not working.
Our economic base is gutted out, we build very little, we import very much. We export lots of our ever more useless dollars, the day of reckoning is close at hand......
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I don't know about a recession...people are still spending cash like crazy.
yeh - we have to...to feed ourselves - notice the price increases of food now days?
When you are up to your eyeballs in muddy water, water moccasins, and alligators, you're probably not on the "edge of the swamp" but right, smack, dab in the middle of it !
Ya know , Greenspan gave up that job , now he should go retire and keep his trap shut . Whether we are in a reccesion or going into one is Bernake's business now . All the negative press never really helps . That is what caused the 1929 stock market collapse . Bad press between two competitors . And that didn't work out to well except for people like J.P. Morgan .