Skip to: Content
Skip to: Site Navigation
Skip to: Search

May 17, 2008 1:05:46 AM CDT

Learn about Newser Points »

Back to the grid

Wall Street Sneezes; Heartland Catches Cold  

Posted Mar 21, 08 11:36 AM CDT in US,  Business    Most Popular

(newser) – The high-profile economic woes plaguing Wall Street and previously hot housing markets are spreading, raising the possibility of the worst recession Americans have faced in years. The New York Times crisscrosses the country, assembling anecdotal evidence—suddenly thrifty brides, unsold construction equipment, sinking earnings at FedEx—that suggests the slowdown could drag into 2009.

Especially worrisome are projections that show consumer spending dropping 1% drop in the first quarter. "That's a wow," says one economist. "Outright declines for real consumer purchases are unusual." Weighing a 6% drop in fourth-quarter home sales, more than 127,000 jobs lost since Jan. 1, and a steep drop in consumer confidence, “it’s not hard to construct very dark scenarios, primarily because the financial system is in disarray,” said another analyst.

Source New York Times

open commentscomments (0)

Editor Recommended

Everyone but officials already knows: We're in a recession
Miami Herald | Mar 21, 08

US recession could have been avoided if officials had acted more aggressively, sooner
Reuters | Mar 20, 08

Business research group says the economic slowdown is worsening
Associated Press | Mar 21, 08

Jobless claims rose last week, another sign recession is near
Associated Press | Mar 21, 08

Related News

  • Home, Retail Sales Keep Sliding

    May 13, 08 11:36 AM CDT
    Home, Retail Sales Keep Sliding The housing market continued to plunge in the first quarter of 2008, as single-family sales dropped 22% from their year-ago pace, to 4.95 million annually. Bloomberg reports that the median home price is off 7.7% from a year ago, to $196,300, as foreclosed properties drag down values. Meanwhile, US retail sales were off in April, mainly because of a big drop in autos. More »

  • Consumer Confidence Hits 26-year Low

    Apr 25, 08 10:59 AM CDT
    Consumer Confidence Hits 26-year Low Consumer confidence fell to a 26-year low in April, as the public fretted over inflation and housing, Reuters reports. The index fell to 62.6, surpassing the 63.2 analysts had predicted. Nearly 90% said the economy is in recession. Respondents also said they were unlikely to spend their stimulus or tax-rebate checks, planning instead to save them or pay down debt. More »

  • Consumer Confidence Hits 26-Year Low

    Apr 11, 08 11:10 AM CDT
    Consumer Confidence Hits 26-Year Low Consumer confidence hasn’t been this low since 1982, according to the Reuters/University of Michigan index, which reported a slide to 63.2 from March’s 69.5. That was lower than even the lowest estimates in a Bloomberg analyst poll. “The consumer’s feeling increasingly hemmed in,” said one economist. “The economy is in a recession.” More »

  • Bank of England Cuts Interest Rate

    Apr 10, 08 7:35 AM CDT
    Bank of England Cuts Interest Rate The Bank of England today cut its benchmark interest rate 25 basis points to 5%, reports Bloomberg, hoping to keep the nation’s economy out of recession. Despite the third cut since December, BoE’s rate remains the highest among the Group of Seven industrialized nations; policymakers have drawn fire for being “behind the curve” in responding to the credit crisis. More »

  • US Recession Will Slow World Economy: IMF

    Apr 9, 08 5:51 PM CDT
    US Recession Will Slow World Economy: IMF The International Monetary Fund says world economic growth will slow drastically in the next two years. In its new report, the IMF states that the world downturn will be led by the US, which will slip into a "mild recession" this year, the BBC notes. The report calls the current crisis "the largest financial shock since the Great Depression." More »

Wall Street Sneezes; Heartland Catches Cold
Graphic charts monthly unemployment rate for the past 13 months and past five years.   (AP Photo)
Wall Street Sneezes; Heartland Catches Cold
Retail sales continue to drop as prices rise.   (AP Photo/Mel Evans)
Wall Street Sneezes; Heartland Catches Cold
Unemployed people wait in line at the California Employment Development Department in San Jose, Calif., in this Wednesday, Jan. 16, 2008 file photo.   (AP Photo/Paul Sakuma File)
Wall Street Sneezes; Heartland Catches Cold
A property in Los Angeles is offered for sale at reduced price. Home sales continue to slow.   (AP Photo/Damian Dovarganes, file)
Wall Street Sneezes; Heartland Catches Cold
Job seeker Anton Yun, right, of Seattle, talks with recruiters from potential employers at a recent job fair. More than 101,000 jobless claims were filed in February.   (AP Photo/Kevin P. Casey)
prev   next
play

Threads (1 of 4)

Tags

recession  • credit crisis  • inflation  • economy  • unemployment  • consumer confidence  • home sales


Loading...

Loading...

Related Threads: Subprime Collapse, Is It Recession?, Stimulus Package, Rate Cut Watch

Next story from this section »

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »