Is America Now Officially In A Recession?

[Yeledaf]

Recessions are a good time to pay off or restructure debt.

Make it your goal to be debt-free by the end of the year. Put off a few luxuries.

Plant a tree and watch it grow. Drink a beer.

Tell those whom you love that you do.

Stand up straight and smile.

[Magnulus]

The economy is very weak and vulnerable, and may well be in a recession, but we won't know for a while. Last year was not a recession, even though inflation was high and the average person saw their living standards decrease. Not a healthy economy, full of lots of pain and suffering for alot of people, but not really a recession in the economic sense.

[Sailaway50]

I feel we are in a recession, certainly, and I am very concerned that it is not "cyclical", as many economists/investment people (theoretically) suggest. I don't know that the US has had any kind of prior "paradigm" (isn't that on the list of no no cliche words?) for the negative factors in place...the problems are VERY broad and across several areas. THis is not a "dotcom" bust or an "oil shortage/inflation" problem, etc.....there are too many factors which are in serious jeopardy/negative. Not to reiterate prior posts, but...housing market, credit, lack of new job creation, the fact that SUCH A LARGE PROPORTION of our alleged "growth" was due to housing (which is going to tank). As housing starts fall, it will have a flow through effect on the rest of the economy (think Flint, Michigan). Sadly, the foreclosures will "eventually" hit their own bottom...BUT that will not fix the fact tht the US has no economic basis for growth...some tech, "services" (which someone has to earn money to pay for..,.).....having shipped our manufacturing overseas.

Oh yes, and outsourcing of "services" also....

The lack of manufacturing base in this country is possibly one of the single biggest problems to our economy. THis is no quick "cyclical recessionary" problem...is it? I see long range, broad problems in our economic base. We can't finance our deficit....using Chinese money to do so......and any government "relief" for a "pending" recession....welll, since we can't tax corporations who aren't making more money and we can't tax John Smith, who has reduced wages, was retired early, or out of a job, and we HAD BETTER NOT OR CAN'T raise even PROPERTY TAXES for local government and schools because of lowering property values.....is it the CHINESE THEN who are going to fund economic relief??? It's not like we have a tax base since sending our mfg overseas........thanks, corporate "America."

[NewToCA]

I think we may be in one too, but I think that it isn't any more troubling than our prior economic crisis. The gas problems of the mid 1970's, the cost of Viet Nam, the high inflation of the late 1960's-early 1980's, the killer interest rates, the Savings and Loan Crisis, the DotCom bust...

Each was perceived as dire situations too, with the end of the US as we know it in plain sight.

[lionking]

Originally Posted by Bob The Builder

Americans are depressed, but the economy is not in a depression. People are bummed that their million dollar+ cracker box might not really be worth a million bucks+. The sooner the house values get marked to market, the better.

that's about right.Im no economist,I listen to others,sometimes I gotta stop and realize it may be some fear mongering,but overall I'd say 2008 is going to be downbefore it gets better....and when it gets better,I dunno.

I have no debt,I have money in CD's,as long as CD's don't fall out in my case I'll be alright.

In Florida "typically" a middle class house say a 3-2,has gone down 50k in the last year and I see alot more for sale signs all the time.So housing wise....and maybe overall economic wise I "think" 2008 is going to depressing for some.