US Recession to Push into 2009

According to CNN, “President Bush acknowledged that the economy has slowed down but said the United States is not headed toward a recession.” Actually Bush expect a feeble tax rebate of $600 to $1200 for households earning less than $75K per individual or $150K filing jointly to pull us back from the brink of calamity.

This directly contradicts many unbiased experts on the topic. The consensus seems to be that the economy may pick back up, but not until 2009.

Optimists beware: there will continue to be blood on the streets. Be especially leery of the financial services sector. Lehman announced another 5% lay off yesterday. Rumors are abounding that other major firms, including Merrill Lynch, will swing the ax again soon.

Just look at a couple quotes below. Who do you think has a better read of the US economy: Bush or Blackstone?

"We are in the midst of a severe financial crisis," said [Blackstone] Chief Executive Stephen Schwarzman. "How long will it last? I am not certain, no one knows the answer."
Blackstone's Hope
Do Dark Days Mean Opportunity?
By Peter LattmanMarch 11, 2008


“Last week’s awful employment data from the US ended all arguments about whether the US is heading for a recession: it is already in one.”
The Short View: US recession
By John Authers, Investment Editor
March 10 2008