Are We Already In A Recession?

Silicon Valley Insider:

New Items: Enough bad news coming from enough industries now that it's reasonable to think we're already in a recession (Economists can't pinpoint recessions without the benefit of hindsight, and most usually start while economists are still predicting that we won't have one). Of course, whether we are technically in a recession or not is irrelevant--it's the trend that matters. And the trend is still getting worse. We continue to believe that the growing weakness will eventually hit online advertising, hurting AOL, Yahoo, Google, and others.

Last 24 hours: FedEx cuts outlook, blames higher prices and economic weakness. Starbucks has weak quarter, blames economy and price inflation. Internet Brands reduces size/price of IPO. New York Times reports weak October revenues, especially in retail advertising...

Overview. We continue to believe we may be in the early stages of a cyclical downturn for advertising and the Internet sector--one that could affect not only start-ups and second-tier players but majors like Time Warner (TWX), Google (GOOG), Yahoo (YHOO), AOL, et al. Such downturns do not begin suddenly, and they are not instantly obvious (except in hindsight). Rather, as with the housing market, the environment changes gradually, over many months, with early signs slowly becoming a steady torrent of bad news.

Read the whole story: Silicon Valley Insider

Comments

[craneman]

We are not only entering a recession, but it will advance to a Depression the likes of which,we have never seen. 1929 will seem like a walk in the park.

[mmckinl]

The working class has been in a recession on and off for 30 years.

The only saving grace , if that is what it is called , is the emergence of women in the work force to create two income families.

For 30 years now the gap between the middle class and the mega rich has widened. Foe 30 years benefits for the middle class have decreased while 'compensation packages' for upper management have balllooned.

Looking at the real inflation rate , including food , housing , energy and healthcare the bottom 60% of the population is measurably worse off over the last 3 decades. Trickle down Reagonomics gets the credit.

[curiousasheck]

Stagflation