U.S. heading into another recession, Wall Street report indicates
“Estimates for the third and fourth quarters have been dropped to levels not seen since the days of the 2008 financial crisis, below even the muted 2 percent expected level of inflation,” CNBC reported Sunday.
“That’s an ominous recession sign for an economy that has barely managed to attain positive growth this year even with the strong level of earnings beats,” according to an analysis by Nicholas Colas, chief market strategist at ConvergEx in New York.
Wait a minute. By all reports out of the Barack Obama White House we are well on our way to recovery.
Not so fast. According to the ConvergEx chief market strategist, estimated revenues for the remainder of 2012 have been forecast lower than anticipated earlier this year. Just so there’s no confusion, in his own words: “This trend, however, has accelerated to the downside over the past 30 days and we are fast approaching levels where these estimates are unambiguously pointing to the risk of a U.S./global recession later into 2012 and 2013.”
Signs of this downturn have been on the economic horizon for months. Evidence of such economic bad news has been suppressed by the White House and its minions of supporters in Congress. In this election year, this does not bode well for the president.
Whether it is negative or inconsequential to the president’s bid for re-election, it is irrelevant. What matters is the people who have not recovered from the recession that began in 2008. This threat of a double-dip recession is a job killer and has the potential to launch the nation and the rest of the world into an economic depression.
No longer is it a Democrat versus a Republican. It’s a matter of survival for most Americans.
It’s a matter of whether businesses — small or large — can employ those persons just getting back to work from their earlier job lay off.
To both candidates running for the office of president, there is only one message (that James Carville, former Clinton campaign adviser coined) they need to concern themselves with in the months leading up to the election: “It’s the economy, stupid!”