"There are plenty of signs now suggesting that we may be in the early stages of a consumer-led recession for the first time in 17 years," Mr. Rosenberg warned in a report to clients.It is nice to see the economists saying what I have been saying for months. Unless the government does something to stem the tide of foreclosures as a result of the subprime mortgage debacle, the economy will go into recession.
"The future is very likely in the hands of the consumer on Main Street, USA, and the latest signposts are not encouraging."
He and other economists point to several alarm bells for the world's largest economy: Banks are tightening consumer lending standards, auto sales have slumped to a nine-year low and key retailers keep missing their sales and profit targets.
It will take sound fiscal policy to avoid a deep and devastasting recession. Is there anyone who has confidence in a team assembled by the Bush administration? I know I do not. They have shown their incompetence at every turn and I for one would not trust my savings to these people.
What is the Bush legacy on the economy for everyday Americans? It is record foreclosures, record consumer debt, record deficits after inheriting record surpluses and stagnant wages. Only the Bush administration would consider that success.
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