Economists Say Recession Risk Rising

Cumulative troubles mounting; most see a Dem in the White House
By Jim O'Neill,  Newser Staff
Posted Jan 11, 2008 8:45 AM CST
Economists Say Recession Risk Rising
A sign advertises a reduced price for a home on the market in the Eagle Rock section of Los Angeles Tuesday, Sept. 11, 2007. Continuing weakness in the housing sector will bring the national economy to the brink of a recession in the coming months, according to the quarterly Anderson Forecast.   (Associated Press)

The odds of a recession hitting the US are rising as the cumulative effects of soaring energy costs, a flailing job market, and a dogged housing slump put the brakes on the economy, predicts a panel of economists in the Wall Street Journal today. Those economic woes, they say, are likely to lead to a Democrat in the White House.

The panel said it was 42% likely a recession would settle on the country, up 4% from December and 19% from July. The economy has voters edgy. "People are looking for change," said economist Susan Sterne; 63% of the 54 panelists chose a Democrat, with 33% picking Barack Obama, 30% choosing Hillary Clinton, and 30% Republican John McCain. (More US economy stories.)

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