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'Vicious Cycle' of New Recession Has Started

Dozens of indexes indicate downturn: ECRI

By Neal Colgrass, Newser Staff

Posted Sep 30, 2011 6:29 PM CDT

(Newser) – The crippled US economy is already tumbling into another recession, according to one economic institute. The Economic Cycle Research Institute reports on its website that dozens of leading indexes indicate another "full-blown recession" is occurring, not a "soft landing." Why heed ECRI’s warning? "Perhaps because, as the Economist has noted, we’ve correctly called three recessions without any false alarms in-between."

ECRI is hardly surprised that the latest expansion of a couple of years is already over. Growth "has been stair-stepping down in successive economic expansions" since the 1970s, ECRI says. Now, in a new recession, the economy will slip into a cycle of lower sales, lower production, and declining employment and income—which will make sales fall even further. "If you think this is a bad economy, you haven’t seen anything yet." (See why George Soros also says the "double-dip" is here.)

A furniture store posts a 'Going Out of Business' sign in a residential strip mall November 11, 2008, in Manassas, Virginia. (Getty Images)

Jay Kober, 60, of Portland, who has been unemployed for 10 months, waits in line with others during the 2011 Maximum Connections Job and Career Fair Thursday, Sept. 15, 2011, in Portland, Oregon. (AP Photo/Rick Bowmer)

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Watching4theMODS

Oct 2, 2011 11:10 AM CDT

Poll: Voters Blame Bush over Obama for Bad Economy Two to One " 54% to 27% Ratio by which voters blame George Bush and Pres. Obama for the bad economy, according to a new Quinnipiac Poll. Voters also said they will blame Republicans (48%) over Obama (34%) if the debt ceiling is not raised, and 67% want the deficit closed with a mix of tax hikes and program cuts, while just 25% believe tax cuts alone can solve the crisis. All of this would be bad news for Republicans if it weren’t for the fact that the “liberal” media had not co-opted their cuts-only, no-tax-hikes-ever dogma" http://www.pensitoreview.com/2011/07/14/poll-voters-blame-bush-over-obama-for-bad-economy-two-to-one/

Watching4theMODS

Oct 2, 2011 11:04 AM CDT

The Republicans under GWB and four more years left this economy in a free fall collapse the worst in 70 years. The Republican policies that only favor the rich caused the failure of this nation. So they were voted out in 2008. Under President Obama the stock market and the economy had stopped collapsing and started to recover. Then the Republicans took control of the House based on a promise that THEY were going to create jobs. Since taking control in the last nine months the economy is slipping back into recession. These are the facts it's the Republicans that are hurting the economy. We can't afford to give the Republicans another chance. It could collapse our economy.

Sterdaddy

Oct 1, 2011 4:18 PM CDT

thanks again Obama for putting us here, can't wait to send ya packing

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'Vicious Cycle' of New Recession Has Started

Dozens of indexes indicate downturn: ECRI

OTHER STORIES ON OUR RADAR

employment • economy • economic downturn • double-dip recession

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More Newser Stories

3 out of 10 Young Adults Moving Home

'Boomerang kids' have trouble finding well-paying work

Bad Economy Boosts Cremations Over Burials

They're getting even more popular, with families citing savings

As Bad as the Depression? If Only

At least new industries arose in the 1930s: Leonhardt

Odds of a Double-Dip? Probably 50-50 Now

This kind of stalled job growth often leads to recession: David Leonhardt

Bernanke, Obama Agree: No Double-Dip

Fed chief, president expect recovery will strengthen

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