"Recession fears rise as firms slash jobs"
"by Robert Gavin, Globe Staff | March 8, 2008
The US economy may have slid into a recession, and the risks are growing for a long and deep downturn, economists said.
The darkening assessment followed yesterday's Labor Department report that US employers cut more than 60,000 jobs last month, the biggest decline in nearly five years and the second consecutive month of job losses. Without government employment, the picture would have been worse. Private employers cut payrolls by 101,000 jobs in February, the third consecutive month they cut jobs.
The job market's deterioration comes as oil prices climbed this week to a record $105.47 a barrel. Meanwhile, the Mortgage Bankers Association reported a record number of American homes went into foreclosure the last three months of 2007, and the Federal Reserve said homeowner equity, battered by sliding home prices, fell to the lowest level since World War II. This all means a tighter squeeze on consumers, who are likely to pull back on spending, which drives about 70 percent of the US economy.
Stock prices, too, continued their slide. The Dow Jones industrial average shed 146.70 points yesterday, closing at 11,893.69, the lowest since October 2006....
President Bush, reacting to the unexpected job losses, yesterday acknowledged economic activity has slowed. But he said the recently approved package to stimulate the economy, primarily through tax rebate checks to most Americans, will provide a "booster shot." In addition, aggressive interest rate cuts by the Federal Reserve will provide a further lift.
See below
Economists expect the Fed to cut rates again, perhaps by three-quarters of a point, when policy makers meet March 18. The Fed has already cut the benchmark rate by 2.25 points since September, to 3 percent, the lowest level in nearly three years. Many economists forecast that the rate, which influences just about every other borrowing rate, will fall to 2 percent or lower before the Fed is done cutting.
Lower interest rates aim to stimulate the economy by reducing borrowing costs, which encourage businesses and consumers to borrow and spend. But the impact of rate cuts has been blunted by the so-called credit crunch as banks, many sustaining huge losses from rising defaults in risky mortgages known as subprime, have become reluctant to lend....
That's why rate cuts having no effect!
They are basically bailing out the banks!
Allen Sinai, chief economist at Decision Economics Inc., a Boston financial market advisory firm. "We are in a very dangerous situation that the downturn won't be mild and short, but long and deep."
.... Yesterday's employment report represents the strongest evidence of a recession yet, economists said.
Job losses were broad, spread across construction, manufacturing, financial services, retail, and professional and business services. The unemployment rate slipped to 4.8 percent from 4.9 percent, but the decline was driven by a shrinking labor force, a sign that workers are becoming discouraged and no longer looking for work.
The Labor Department only counts people as unemployed and in the labor force if they actively look for work.
The deteriorating job market is particularly worrisome because historically job loss is the main reason homeowners end up in foreclosure, economists said. If job losses accelerate, it could send record-high foreclosures even higher, sparking a cycle in which foreclosures weaken the economy, leading to more job losses, which lead to more foreclosures.
"The difference between a slow growing economy and recessions is you descend into self-reinforcing negative cycles in which these things feed upon themselves," said Mark Zandi, chief economist at
Yeah, it is called a VICIOUS CIRCLE and YOU ARE IN IT, AmeriKa!!!
Just as the BLOGS SAID YOU WERE!!
Not that I am happy about it; I'm not!
But ONCE AGAIN, THEY WERE RIGHT and the MSM LIED!!!!
And you are going to have to PAY to get that "rebate," readers!
What a SCAM!
Hell, just the MAILING COST YOU!
"by Devlin Barrett, Associated Press | March 8, 2008
WASHINGTON - At a cost of nearly $42 million, the IRS wants you to know: Your check is almost in the mail.
Pffffffft!!
Keep the $42 mil, and FUND SOME SCHOOLS or KID'S HEALTH CARE!!!
How about that?!
Instead of crowing about the shell game they are playing with YOUR MONEY, readers!
"There are countless better uses for $42 million than a self-congratulatory mailer that gives the president a pat on the back for an idea that wasn't even his," Senator Charles Schumer said yesterday, arguing that the IRS could more effectively spend the money to catch tax cheats.
That's the DemocraPs answer for the $$$$. Catching tax cheats.
How about some services?
After all, the war profiteers are getting a free ride!
Where ya been, Dems?
Keith Hennessey, director of the president's National Economic Council said, "You want to get the information out so that you have as few people as possible confused about what's happening."
A Bush administration official said that?
Ha-ha-ha-ha!!!!!!
The actual rebate checks are scheduled to go out starting in May, after the IRS has finished separately mailing out routine refunds for the 2007 tax year.
If it is so urgent, why aren't they shipping them next week?
The letters will be a reminder that people need to file a 2007 tax return so they will receive the rebate, if they are eligible for it.
Yeah, because the government needs the TAX PAYMENTS for the WAR NOW!!!!!!!!!!!!!!!
That bribe they giving you as a KICKBACK? That's LATER!!!!!!!!!!
For those people to get a rebate check, they will need to file a tax return."
