Could Economy Get Worse? Yes. And, It Is!

Posted on January 16, 2008
Filed Under Journalism, commentary |

Things are getting real scary on the economic front.

Just yesterday, the nation’s largest bank, Citigroup, had to choke on an enormous fourth quarter loss of $9.83 Billion.

 The market for the year which only just begun is down some 6 percent and that is one of the worst starts to a new year reportedly since 1926—just a few years before the start of the Great Depression of the early 20th century.

On top of all that, inflation is also making an unwelcome comeback which creates problems for the Fed when it comes to justifying further interest rate cuts which may help ease a recession but could fuel inflation.

The Associated Press reports today that “higher costs for energy and food last year pushed inflation up by the largest amount in 17 years.”   Not at all good news.

So, where are we headed? The problem seems to be, no one really knows. The so-called “experts” have been as wrong as the polls leading up to the New Hampshire presidential primary.

Even the Fed, just months ago, felt little need to keep lowering interest rates because it failed to see just how bad the economy was getting.

Some “experts” say a recession is coming; other “experts” say a recession is already here.

You pick one.

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