Economic Quacking
Yesterday, Rook called for an end to the "recesssion" euphemism.
The same day, Steve Benen posted the latest economic numbers showing it's far worse than we thought.
FALLING OFF A CLIFF.... About a month ago, initial estimates showed that the U.S. economy shrank by 3.8% in the fourth quarter of 2008. One analyst, at the time, described it as an economic "train wreck."
If 3.8% was a train wreck, we're going to need a whole new list of adjectives to describe the new numbers.
The fourth-quarter estimate was revised this morning, and as it turns out, the economy shrank by 6.2%. This graph, by way of the Washington Post, helps drive the point home nicely.
It was the worst economic showing in a quarter-century.
If it quacks like a depression, it's a depression.
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2 comments:
We had the same drop-off in a quarter in 1982.
For that and many other reasons, this is not (yet) a Depression and probably won't be.
Let us hope Mr. Schansberg is correct, although I think our current model is weaker than the 1982 economy. At least back then we were the world's greatest lender nation (not the world's greatest debtor nation as we are today), even though inflation was rampant. Also, our banks had plenty of money to lend, though interest rates were sky high.
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