Hard Times Slowly Fading; No Recession in 2008
Over 700 Economic Professionals Generally Have Positive Outlook for 2008 Economy
In the wake of a 2007 that experienced a falling U.S. dollar, uncertain energy prices, a disintegrating housing market, and the sub-prime mortgage crisis, 49% of financial professionals expect business conditions to weaken during 2008, while 14% anticipate business conditions to strengthen next year. Their biggest concerns are the declining U.S. dollar, increasing costs of energy, and the ramifications of the housing market debacle.
The volatility in credit markets resulting in part from disruptions in the sub-prime mortgage industry has had some impact on corporate credit, but at the same time access to credit has remained stable over the past six months.
"The financial professionals we surveyed have a deep, comprehensive understanding of the market forces and business dynamics affecting the U.S. economy. They are managing operations affected by credit, employment, and dollar valuations day in and day out...Their views are excellent indicators of future business conditions," said Jim Kaitz, President and CEO of AFP.
However, the Dow Jones Industrial Average was down nearly 100 points in morning trading Monday as investors took notice of a recent statement by Alan Greenspan in which he warned of a possible U.S. economic recession in 2008 and said that the federal government needed to do more to prop up sub-prime borrowers.
The Dow closed down 178 points on Friday in the wake of investors' worries over higher than expected inflation.
Monday's continued fall represented the extension of the Dow's worst week-long drop in the last month, which occurred just when stocks were poised to set a new record high closing for the Industrial Average. Recent economic news has led some economists and analysts to take a more dismal view of the near future, saying that the "ebullient times" are behind us, at least for now.
An independent poll of 52 leading economists by Blue Chip Economic Indicators, which is conducted each month, found them recently stating that the economy has held up well despite the second-half problems, that growth should continue, albeit sluggishly, in the first quarter of 2008, and then the economy should rise to its historical average of 3% annual growth by the second quarter.
Original Newswire Source:
http://prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/12-17-2007/0004724083&EDATE=
Published by Brant McLaughlin
I am a Writer driven by endless curiosity and a deep desire to waste time creatively. View profile
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5 Comments
Post a CommentHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!
Ya gotta love the 'net.
If you think 2008 was bad..JUST WAIT.
I am from the future, and it get's worse.
Much worse!
A year later looking at this...NO RECESSION?! Haha! No recession my a**! Man, I laughed hard tday.
We don't need reform, Jeff. We need revolution.
There probably is a little more time,but without some serious reform soon, a recession will likely happen. The Bush deficit policies have to be reversed, sooner rather than later. The ultimate "trump card" is whether or not Mr. Bush gets his wish and we attack Iran. Such an ill-advised move would probably move the economy right past recession and into depression.
Let's hope that's right. As if the economy isn't bad enough - a recession would be awful now!