Financial Times: US Faces Worst Recession In 26 Years

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

Senior officials at the Treasury and Federal Reserve are confident that the rescue plan for US banks will succeed in preventing a financial system meltdown and ensure there will not be a repeat of the Great Depression. But they know that a sharp economic downturn is already baked in the cake. They do not,however, know how deep or protracted it will be.

The focus of concern is shifting from the markets - although these remain dangerously stressed - to the wider economy, where the consumer finally appears to be cracking.

The Fed and Treasury were expecting the economy to weaken but not as rapidly as it has, with collapsing consumer confidence, falling home starts, slumping retail sales and falling industrial production.

"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.

Keep reading here. (log-in required)

Comments

[JimMan35]

Um. Can someone explain to me how a hotdog can be "crunchy"? Thanks.

[whatfreshhellisthis]

Theory # 1: The hot dog pictured has arms, which may contain bones. That would make it crunchy. As deepintheheartoftejas has pointed out, there are no legs, but if there are legs and the artist just didn't depict them, they also might have bones.

Theory # 2: Some hot dogs are allowed to spin 'round and 'round and 'round on the little spit, perhaps for months, until they have a black, hard surface, which probably would be crunchy.

Comment: If hot dogs come down from their present exhorbitant price, we all may be eating a lot more of them. Right now they are very pricey.

[MrSanFran]

On November 4, 2008, 28 years of Reaganomics will come to an end. The damage has been
severe and will take many years if ever to repair. Anybody who voted for George W Bush has this
as part of their legacy in additon to the million plus people killed and maimed in the Iraq war.

[rich misty]

Thank you GOP for destroying my country.

I will see you at the polls!!!!!

[deepintheheartoftejas]

Can't HuffPo find a better picture than that damned anthropomorphic hotdog? I've seen it accompanying article after article about the economy over the year. I think it's stalking me. I have nightmares about it. WHERE ARE ITS LEGS??