Its tough to say being someone who did not live through the great depression, but is it going to get that bad? It has seemed like all you have heard on the news over the past months has been bad news, or very pessimistic outloos on the economy, but there is always that one persn out of the group who is optimistic. If you are like me, you will probably take the side of the optimistic one because it makes you feel better about what's going on, even thought he or she may be grossly out numbered, and it makes no statistical sense to take their side, it makes you feel better. At least that's how it is for me, I like to try to make sense of everything optimistic and throw all the rules on statistics out the door and claim the pessimists are missing out on a great opportunity!
Here's an article from msn money.
Economists: US is in recession and will get worse
ANN ARBOR, Mich. (AP) - The U.S. economy is in a recession that will worsen until mid-2009, University of Michigan economists said Thursday in their annual national economic forecast.
They expect the recession to bottom out in the middle part of next year, but say the country will see only modest economic growth in 2010 with unemployment above 8 percent throughout that year.
They expect the nation to lose about 2.4 million jobs over the next 18 months.
Michigan economist Joan Crary characterized the recession as "moderately severe," but said she expects a stimulus package put in place early next year will keep it from becoming worse.
"We're not forecasting economic catastrophe," Crary said. "We expect the set of policies put in place will be successful."
Among the policies she expects to see are stimulus checks given to taxpayers to spur spending, more money for infrastructure improvements and state and local governments, loans for domestic automakers and extended unemployment benefits.
She warned that if steps aren't taken to spur the economy the recession would be worse.
Motor vehicles will continue to slide, from 16.1 million last year to 13.3 million this year and 12.2 million in 2009, the lowest number since 1983, she forecast. She expects sales to pick up to 13.6 million in 2010.
The Michigan economists expect to see a reduction in market share for the domestic automakers but said the forecast isn't built on the demise of any of them.
The forecast said inflation will drop from 4.2 percent this year to 1.3 percent next year before rising again to 2.6 percent in 2010. Falling oil prices will be responsible for some of that drop, with the forecast calling for prices to stabilize at under $60 a barrel in 2009.
It expects housing prices will fall 14 percent this year and 6 percent next year, with new housing starts dropping to a low of 836,000 next year and to improve slightly in 2010, but not to this year's level of 965,000 units.