ECONOMICS: Economic forecasters usually have three choices: Up, Down, or Sideways. In forecasting the outlook for real GDP growth over the rest of the year and in 2009, there seems to be only two camps: Those who expect the economy to continue to muddle along at a slow pace somewhere between zero and 2% and those who expect negative growth. In other words, the consensus outlook is for either a growth recession or an outright downturn in economic activity. Debbie and I are in the middle. We concluded on March 3 that the economy was probably falling into a short and shallow recession. In fact, so far, it has been a blend of a severe recession in the housing and auto industries, a mild recession in the labor markets, a growth recession in consumer spending, and a boom in both exports and nonresidential construction. Read More
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