Economists Say Recession Risk Rising

Cumulative troubles mounting; most see a Dem in the White House
By Jim O'Neill,  Newser User
Posted Jan 11, 2008 8:45 AM CST
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...   (Associated Press)
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(Newser) – 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.