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Wall Street Sneezes; Heartland Catches Cold

Worries about a recession are hitting home with Americans

By Jim O'Neill,  Newser User

Posted Mar 21, 2008 11:36 AM CDT
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(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.

Graphic charts monthly unemployment rate for the past 13 months and past five years.
Graphic charts monthly unemployment rate for the past 13 months and past five years.   (AP Photo)
Retail sales continue to drop as prices rise.
Retail sales continue to drop as prices rise.   (AP Photo/Mel Evans)
Unemployed people wait in line at the California Employment Development Department in San Jose, Calif., in this Wednesday, Jan. 16, 2008 file photo.
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)
A property in Los Angeles is offered for sale at reduced price. Home sales continue to slow.
A property in Los Angeles is offered for sale at reduced price. Home sales continue to slow.   (AP Photo/Damian Dovarganes, file)
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.
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)
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Everyone but officials already knows: We're in a recession
Miami Herald

US recession could have been avoided if officials had acted more aggressively, sooner
Reuters

Business research group says the economic slowdown is worsening
Associated Press

Jobless claims rose last week, another sign recession is near
Associated Press

Money • US

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

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