The Crash of 2008

The Crash of 2008–04–17

When your neighbor is fired, it’s a recession. When you lose your job, it’s a depression.

The economy is an expression of culture. The psychological factors are vital the surge of adrenalin when the customers bring ropes to the bank.

The first report is from the Federal Reserve. Since they are partly to blame for the mess, they do not probe very deeply.

Conditions in the US economy have worsened noticeably in the past six weeks, the Federal Reserve said in its closely-followed Beige Book report.

The central bank's regular snapshot of business activity across the US described "weaker" conditions and "softening" consumer spending.

The report also described the troubled housing market as "anaemic".

The IMF recently warned that the US economy could be set for a "mild recession" this year.

Some commentators believe the economy may already been in recession, although figures published on Tuesday showed that industrial output actually rose slightly in March.

In a speech on Tuesday, one of the bank's senior officials said that the economy had "all but stalled" and may contract in the first half of the year.

"I am not ruling out a recession," said Janet Yellen, president of the San Francisco Reserve Bank.

The Beige Book monitors economic activity in 12 of the country's largest business districts.

The economists at Tom Paine concentrate on the people involved they call Main Street America.

Borosage, Tom Paine

On Wall Street, the masters of the universe have turned to prayer and worry beads. At the Federal Reserve, a full night's sleep is a fading memory. Across Main Street, the recession is starting to hit, stores are shutting down, bankruptcies are spreading, houses are being foreclosed or abandoned. The pain of the recession is just beginning to hit.

Note: Soon, we will see claims the Administration is cooking the books, as an election ploy.

Hmmmm! I wonder how they got that impression.