Is It Recession?

The number of international tourists could decrease this year if the US falls into a deep recession, but the UN is "cautiously optimistic" that 2008 will be the fifth straight year of growth, Reuters reports. After 2007's record 898 million tourist trips, a 6.2% jump over 2006, the World Tourism Organization projects continued but slower growth in 2008. More »

The House approved a $146 billion economic stimulus package today with overwhelming bipartisan support. The bill, which would give most Americans rebates of $600, passed by a vote of 385-35 and now heads to the Senate, reports the Washington Post . Speaker Nancy Pelosi asked the Senate to approve its version quickly, without changes that would stall it or risk a presidential veto. More »

The Senate has unveiled its own economic stimulus package, challenging the plan agreed to between House leaders and the White House. The Senate plan would give $500 to almost all Americans, rich and poor, and would extend unemployment benefits to the jobless, reports the Washington Post . Senators are also likely to add heating cost assistance, foreclosure-prevention funding, business tax incentives, and other benefits. More »

The vast majority of Americans are convinced the nation is sinking into a recession—but most are not feeling the pinch themselves and have no plans to tighten their belts just yet, according to a Los Angeles Times/ Bloomberg poll. A year ago a similar poll showed widespread confidence that the economy was in good shape.  More »

Congress today announced an economic stimulus package that would put a $600 check in every American taxpayer's mailbox by early summer, sources tell CNN, and a likely $300 per child. The refunds are "there to strengthen the middle class, to create jobs and to turn this economy around," said Nancy Pelosi in announcing the deal this afternoon. More »

Bigwigs spooked by the downturn in the US economy aren't spreading their usual cheer at the World Economic Forum in Switzerland, Fortune reports, but many other Davos attendees are smiling. Representatives say the Indian and Chinese economies are strong enough to weather recession; many agree with George Soros that “the current crisis is the end of an era based on the dollar.” More »

Get ready for that glow to wear off: The good feeling on Capitol Hill over a stimulus package will end as soon as the first deal is done, with Republicans and Democrats digging in on various economic cures. The next legislative round, Politico reports, will likely see GOPers fighting to extend tax cuts and Dems pushing a huge infrastructure package. More »

Yesterday's steep interest rate cut—just a week ahead of a scheduled policy meeting—made the staid Federal Reserve come across as spooked and jumpy, leaving many to wonder if the Fed knows of worse news to come, Reuters' Ros Krasny writes. The surprise .75-point cut "is a declaration of a state of emergency for the US markets and the economy," a market strategist said. More »

President Bush pushed his fiscal stimulus plan with lawmakers today and vowed the bipartisan group will find "common ground," the Washington Post reports. The economic boost—which he set at $150 billion—will not kick in overnight, he warned, but said congressional leaders must reach an accord in 3 weeks. That means checks would reach taxpayers and businesses in 5 or 6 months, analysts say. More »

If you’re watching today’s economic news with trepidation, financial experts want you to take a deep breath. “This is not the beginning of the end,” said one analyst. “If you’re going to invest in stocks, this kind of volatility comes with the territory.” Instead of selling with the crowd, analysts suggest you keep funding your 401k and paying down debt, MarketWatch reports. More »

Stock markets around the world continued to hemorrhage today on worries the US would slide into recession, prompting finance ministers to warn that the slump is threatening EU growth. They revised forecasts downward for the 15-member EU, reports Bloomberg. “There is great concern about the financial crisis,” said the Belgian finance minister. More »

President Bush today called for a $145 billion stimulus package to stop the economy from sliding into a recession, the Wall Street Journal reports. A bipartisan plan loaded with compromises is likely in the near future. Valued at 1% of GDP—and in line with dollar amounts suggested by the Fed—Bush’s plan includes tax relief for individuals and business incentives. More »

President Bush's plan to give the economy a temporary lift favors tax rebates of up to $800 for individuals and tax breaks for businesses, the AP reports. Bush met privately with lawmakers today and will outline his plan tomorrow. Congress hopes to act quickly as fears of a recession grow. The president did not push for a permanent extension of his tax cuts, the AP notes. More »

Ben Bernanke insists he won’t take sides in a congressional fray over how to revive the nation’s flat-lining economy. But the Fed chief says he will support an economic stimulus package—be it GOP tax cuts or Democrats' increased spending—as long as it is quick and temporary, the New York Times reports. Lawmakers are scrambling to devise ways to ward off a recession, and Bernanke testifies before a House panel tomorrow. More »

The Federal Reserve's regional business survey—released today, ahead of chief Ben Bernanke's appearance tomorrow before Congress—shows economic activity increasing more slowly, thanks to "disappointing" holiday sales. Some analysts think the survey—nicknamed the Beige Book—is evidence for a general economic slowdown, reports Bloomberg. "We are pretty much on the knife's edge'' of a recession, says one economist. More »

With Democrats and Republicans increasingly spooked about a looming recession, the two sides appear ready to work together on an economic stimulus package of about  $100 billion in tax cuts and spending, the New York Times reports. Reps. Nancy Pelosi and Harry Reid yesterday wrote to President Bush, "We want to work with you"; Bush looks poised to accept the overture. More »

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. More »

The Federal Reserve may make "substantive" cuts to interest rates later this month in the face of rising economic difficulties, Ben Bernanke said today. Citing troubled financial markets and rising unemployment, the Fed chairman implied that it might drop its target short-term interest rate by .5% from 4.25%. “We stand ready to take substantive additional action as needed to support growth,” Bernanke said. More »