eco-journal32 - dismissed in November. Some economists...

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In String of Bad News, Omens of a Long Recession By MICHAEL M. GRYNBAUM Published: December 7, 2008 Americans are experiencing a longest downturn of the economy since the end of World war II. Despite months of rescue efforts, hundreds of billions of dollars in government spending and an avant-garde apparatus of financial tools, the American economy has only worsened, and at a faster rate than nearly anyone predicted. “For the average American it’s going to be devastating for the next 6 to 12 months,” said Bernard Baumohl, chief global economist at the Economic Outlook Group, a research and forecasting firm. What is the reason for this? The decline in consumer spending is likely to continue, making the economy worse and worse. Half a million Americans, from financial analysts to factory workers, were
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Unformatted text preview: dismissed in November. Some economists predict that the economy could lose as many jobs in the first six months of 2009 as the entirety of 2008 (NY Article). Who are benefit from this recession? Those who benefit from the downturn could be those still willing to take a trip to the mall, where they will find deep discounts on a range of products. First-time home buyers may also find deals, as long as they can obtain a mortgage no easy task in a time of tight credit. Americans who are lucky enough to still collect a paycheck are likely to save more, cut back on luxury items and restaurants, and channel more of their income into savings accounts for college and retirement....
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This note was uploaded on 03/10/2011 for the course ECON 101 taught by Professor Duc during the Spring '05 term at Linfield.

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