Economy in free fall in fourth quarter

[Zorro]

Tougher times acomin'...

<snip>

The U.S. economy contracted violently in the fourth quarter, with gross domestic product falling at its fastest pace in more than 25 years, economists said ahead of what promises to be a grim week of economic news.

"Real economic activity fell off a cliff during the fourth quarter, producing a sharp drop in employment, output and spending," wrote economists at Wachovia.

And the worst part is that it's not over. Economists expect another huge decline in the first quarter, with a smaller contraction in the second quarter.

GDP is expected to have fallen at a 5.5% annualized rate in the final three months of last year, according to the median forecast of economists surveyed by MarketWatch. That would be the biggest decline since the 6.4% drop in early 1982 and one of the worst quarters in the post-World War II era.

<snip>

More at: http://www.marketwatch.com/news/story/Economy-free-fall-fourth-quarter/story.aspx?guid=%7BD87827B0%2DF739%2D42A7%2DA123%2DAEB36F40D99B%7D

[Taverner]

1. Question: are we seeing "dead branches" fall or healthy limbs

[Warpy]

3. We're seing a lot of fake money

that was predicated on ordinary folks being able to pay off all their debt vanish into thin air.

That means we're all going to be poorer and that there is tremendous deflationary pressure. When that pressure hits the supply side, they cut jobs and increase that pressure.

You can't starve the peasants and force them into debt for long before you reach that tipping point. We've not only reached it, we've gone way over the edge.

I fully expect the stock market to go well below its floor adjusted for inflation in the next two years. It will likely take at least a decade to recover at all.

[Taverner]

4. 10 years? You're crazy

The Great Depression didn't even last 10 years, and they had a WHOLE LOT more problems than we have.

[Warpy]

6. Excuse me?

You need to read a little more closely. I was talking about the stock market and that didn't recover until 1954.

You might want to watch those ad homs, especially when they're the result of careless reading.

[tom_paine]

7. Well said, Warpy. I have been known to occasionally fly off the handle and do the same myself.

Those are good words you typed there, and all of us need to hear them sometimes, I think.

[Taverner]

9. Sorry - that was more of a "Geddoutahere!" crazy

Not implying you actually are crazy

[whistle]

2. 4th quarter was all Bush and republican obstructionism

[SpiralHawk]

5. The republicon homelanders' parting Pile 'O Shit to America

Thanks a pantload, Republicon Homelanders. You have totally trashed America, and now you have gone AWOL. As usual. You will just sit on the sidelines SMIRKING at the Americans trying to fix the messes you have made.

Your wide-stance, diaper-clad Family Values and so-called 'conservative' economics are now recognized by ALL as greedy, deviant, short-sighted, and disasterous (except of course by the kool-aid guzzlers who still listen to your overpaid, Chickenhawk propaganda puppets).

[bobd0]

8. AND YET THESE REPUBLICAN MOTHERFUCKERS LIKE BONER HAVE THE NERVE TO PROPOSE MORE OF THE SAME. K&R nt

[SammyWinstonJack]

11. Nerve has nothing too do with it, it's all greed, all the time with repugs.

[Generic Brad]

12. There's a serious leak in their think tanks n/t

[Blackhatjack]

10. Money is getting increasing difficult to obtain, which will lead to the following...

Doesn't happen often, but that sure seems to be the abyss we are looking into.

Imagine for a moment what it will be like when 10% unemployment meets up with unsustainable personal debt service, and loss of medical health care insurance coverage.

Deflation of the value of most assets will make raising cash from sale of tangible assets more difficult.

And I predict that all those financial institutions will continue to take the public's taxpayer money and hoard it to make up for losses on their financial sheets.

Obama is going to have his hands full reviving this choking economic engine before it completely dies out.