US economic growth drops sharply

[busybeeburns]

Unemployment could rise further as the economy weakens

 

US economic growth fell sharply in the last three months of 2007 as the credit crunch took effect, figures show. The US Department of Commerce says the economy grew at an annual rate of just 0.6% from October to December.

 

In the previous three months, between July and September, the economy was growing at annual rate of 4.9%.

 

The slowdown was triggered by a slump in building activity, which fell by 16.9%, the biggest fall in 25 years, as housing prices collapsed.

 

Worse than expected

 

The US slowdown is even bigger than predicted by analysts. who were expecting a reduction to a 1.2% annual growth rate.

 

And it reinforces the view, recently put forward by the IMF, that the US economic slowdown will be longer and deeper than previously thought - and have a greater impact on the world economy.

 

The IMF report suggested that even by the end of 2008, the US economy would still only be growing at a year-on-year rate of 0.8%.

 

And 2007's overall growth rate of 2.2% is already the weakest since 2002, when the US was recovering from an earlier recession.

 

Rescue plan

 

The spiralling downturn in the US economy is spurring efforts by politicians and policy-makers to take corrective action.

 

The US central bank, the Federal Reserve, has already cut interest rates to 3.5% from 4.25% this year in order to boost economic growth, and is expected to cut further when it finishes its regularly scheduled meeting later on Wednesday.

 

And the US Congress and the Bush Administration have agreed an economic stimulus package which would add $150bn in tax rebates to the economy by the summer. The measure has already been passed by the House of Representatives but is still awaiting Senate approval.

 

Even the head of the IMF, Dominque Strauss-Kahn, normally a fiscal conservative, has endorsed the need for both monetary and fiscal measures to help stabilise the situation.

 

But there is little sign yet that the US housing market is bottoming out.

 

This week, new data showed that US house prices were falling at their fastest rate since the 1930s, while foreclosures (repossessions) in 2007 topped two million after many sub-prime mortgages went sour.

 

http://news.bbc.co.uk/1/hi/business/7217769.stm

[chuck kottke]

Yea, our local paper was full of foreclosure sales! Well, this is one good reason why we need to get the money out of politics, as best we can - when wall street pays off politicians to weaken reg's on the "Banking Industry", and the results are all too predictable in the gambling houses of the market, coupled with the hidden interest hikes in these mortgages. So, let's see - we go from S&L crisis to Enron and Worldcom to the Interenet Bubble to a Housing "Bubble".. I think the housing bubble is the worst, because it's so very disruptive on people's lives; the hidden clauses in these loans make me wonder about the ethics of lending institutions in general..

Unregulated markets were one factor in the collapse of the 30's; hopefully, we'll get that lesson before it's too late.. We need better market regulations, honest and open government, and a free press.

[berrywoman]

I know how to fix the economy.....

 

 

legalize marijuana!!!! :smoking:

[Matter-Eater Lad]

I know how to fix the economy.....

 

 

legalize marijuana!!!! :smoking:

 

Ron Paul 2008

[chuck kottke]

Somehow that just won't do it (but I kinda like the sentiment!).:laugh3:

RON PAUL IN 2012!

[rudy_o]

i have no idea. byebye. fullstop.

[berrywoman]

Ron Paul 2008

 

indeed!

 

 

but I don't think he'll make the ticket.... :(

 

 

I am however happy that he hasn't dropped out of the race.... because then people would still vote for him and take votes away from McCain or Romney... :) so thats always a plus.... and his agenda is still somehow accomplished. :)

[ugadawg5]

for those of you who forget, a free-market economy runs in cycles. the same economic downturn occured at the end of the clinton years and blossomed in the first couple of years of the bush years; this was magnified by 9/11.

 

obama, mccain, ron paul, or britney spears will not be able to change the fact that the economy fluctuates. surely the president influences economic growth by implementing policies such as tax-cuts (which are a proven way of economic stimulus), but on the whole the president has very little say in the performance of the economy.

 

the best way to prevent yourself from being the victim of recession years and high unemployment is to make yourself skilled enough to be immune from unemployment. make yourself invaluable to a certain industry/company so that you always have a job. a smart, driven person will seldom have to worry about a recession.

[GazeboflossUK]

There's alot more going on than any other candidate will dare talk about....

 

Every Generation has a Champion.

 

Who is Ron Paul? What does he stand for? If you want to know, then the full-length interview at http://goldsilver.com is the one to watch. A nine term Congressman and Presidential Candidate whose passion is monetary policy, Dr. Paul has served on The House Banking Committee and The Financial Services Committee. If anyone is in a position to know what our country has in store financially, it is this man. In this interview with Michael Maloney of Goldsilver.com Presidential Candidate Paul warns what lies dead ahead for our country if we continue on our present path.

 

Educate yourself.....

 

http://www.youtube.com/watch?v=lJbt0fy56Yw

 

http://www.youtube.com/watch?v=1YafCXZ7lvg

 

http://www.youtube.com/watch?v=K3u3D9Mqqy8

 

http://www.youtube.com/watch?v=nNaUMBk4VOY

 

http://www.youtube.com/watch?v=flYBCE6l2mo

 

http://www.youtube.com/watch?v=rWfYH9qcuno

 

http://www.youtube.com/watch?v=UbNF3_O5ND4

 

http://www.youtube.com/watch?v=b5Lpflqqbb8

 

http://www.youtube.com/watch?v=ZdrSyjZE5dY

[berrywoman]

for those of you who forget, a free-market economy runs in cycles. the same economic downturn occured at the end of the clinton years and blossomed in the first couple of years of the bush years; this was magnified by 9/11.

 

obama, mccain, ron paul, or britney spears will not be able to change the fact that the economy fluctuates. surely the president influences economic growth by implementing policies such as tax-cuts (which are a proven way of economic stimulus), but on the whole the president has very little say in the performance of the economy.

 

the best way to prevent yourself from being the victim of recession years and high unemployment is to make yourself skilled enough to be immune from unemployment. make yourself invaluable to a certain industry/company so that you always have a job. a smart, driven person will seldom have to worry about a recession.

 

thats the most UNEDUCATED thing I think I have EVER seen you write on here..... lol

 

no one is immune from unemployment... :laugh3: and no one is invaluable.... :laugh3:everyone and everything is disposable... and just because you may be the victim of a layoff at a certain job/company doesn't mean you're stupid, any less educated, or non-driven.... tis precisely why its called 'lay offs' and not FIRED!!! there's a BIG difference.....

[winigwl]

how bout this to solve the economy- get rid of the republicans

[Space Cadet]

Yes there is a natural ebb and flow to the economy, but this is happening for some very specific reasons that are different from the dotcom bubble in 2001. Individuals have been spending too much, borrowing too much to pay for it, and saving too little all for too long. And the banks used some nasty tactics to make people keep borrowing. It kept the economy going much stronger than it should have been, but loans come back to haunt you, and that is exactly what is happening now.

 

Loans have to be paid back eventually- which means less spending, and no new loans, which means even less spending. Which means the economy suffers.

 

It's all been living on borrowed time for a while now. It's what happens when people and policies mortgage the future for the sake of the present... the future has a habit of catching up.

 

[/b]

 

thats the most UNEDUCATED thing I think I have EVER seen you write on here..... lol

 

no one is immune from unemployment... :laugh3: and no one is invaluable.... :laugh3:everyone and everything is disposable... and just because you may be the victim of a layoff at a certain job/company doesn't mean you're stupid, any less educated, or non-driven.... tis precisely why its called 'lay offs' and not FIRED!!! there's a BIG difference.....

 

 

exactly. :worried: