Recession signs are clear, economists say
Economists are anticipating the third quarter will be the start of a significant recession that could last awhile.
Even before the credit crisis of the past few weeks, economic indicators from August and September presage a period of negative growth, according to a report by Dow Jones & Co.’s Marketwatch.
Many consumers and business have felt the economy has been in a recession, but the country so far has not tiptoed past the official definition of a recession equaling two consecutive quarters of negative growth.
New figures released Thursday by the Labor Department showed jobless claims at their highest level in seven years.
The economy seems to be “on the edge of an abyss,” Joel Prakken, chairman of Macroeconomic Advisers told the online news organization.
Experts predict a protracted recession this time because the credit market freeze and existing consumer and business debt means that any interest rate cuts by the Federal Reserve will have trouble spurring purchases.
A U.S. recession is expected to also cool growth in other parts of the world that depend on supplying American consumers with goods. ' Eric Kulisch