WASHINGTON (MarketWatch) — The U.S. recession will be “significantly deeper” than they previously thought, Goldman Sachs economists predicted Friday in a research note. The economy will probably show no growth at all between the middle of 2008 and the middle of 2009, with gross domestic product falling 2% this quarter and 1% next, they said. Two other quarters will show 0% GDP growth. The unemployment rate will likely rise to 8% by the end of next year from 6.1% currently. “We now also see at least another 100 basis points of monetary easing from the Federal Reserve, aggressive measures to stabilize the money markets, and a possible further easing of fiscal policy under a new administration,” wrote Jan Hatzius and his team of economists.
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We will be lucky if we get away with single digit GDP percentage declines.
Awesome pix.
I am already unemployed, just watched my career evaporate. What me worry?
Maybe it goes further then that?
http://www.unknowncountry.com/journal/?id=336
Or even more?
http://urbansurvival.com/week.htm
You’d be extremely well off if you currently have at least a 6 month supply of food(keeping in mind the possibility of having no running water or electricity in preparation of it), large amounts of small bills(banks closed, credit cards no good), and good guns and plenty of ammo.
Read this for certain:
http://ferfal.blogspot.com/2008/01/most-important-need-in-first-few-days.html
Sometimes destruction is constructive.
Given the horrible education and lack of historic perspective that many of America’s youth have it may surprise them to learn that Japan and Germany lost the war.
The city where I live, Chicago, has the best urban layout and architecture of any American city because it burned to the ground. It isn’t called 2nd city because it takes a back seat to the open garbage pit of New York or the suburban water cooperative called Los Angeles, but because it is the 2nd city of Chicago.
The big three don’t need a strong economy. A strong economy isn’t going to make people cars that are completely substandard to mediocre except for niche Corvette and the increasingly irrelevant GM body-frame-trucks.
What the big three need is to declare Chapter 11 and rise from the ashes as restructured competitive companies without incompetent executives, unnecessary, product line corrupting dealers and crushing legacy costs.
The $25 Billion auto bailout was a mistake, only to be eclipsed by the $700 $840 Billion financial and wooden arrowhead industry bailout that came later.
Neither bailout will likely be enough to save the big three from Bankruptcy; that is a very good thing for the future of the US auto industry.
” …. wooden arrowhead industry bailout ….”
I was curious about that odd bit attached to the legislation and decided to educate myself more about it. For reasons unknown to me, the federal government levies an excise tax of $.43 on arrow shafts. The list of excise taxes the federal government collects is a bit bewildering. Have a look at the IRS form:
http://www.irs.gov/pub/irs-pdf/f720.pdf
In theory these taxes are due no matter if the product is manufactured in the US or imported. In practice it is of course easier to collect from a US based manufacturer than from the correct spot in the importation chain.
The provision added to the rescue bill excuses small arrows designed for bows of under 30 lbs. pull weight from these taxes. Such bows are usually used by children at summer camp for archery training. Heavier duty hunting arrows are still subject to the tax. The arrow tax is part of a group of taxes on “ammunition” which date back to 1919, a time when excise taxes and import duties were essentially the only source of income for the federal government. For reasons I don’t understand, in 1991 the collection of firearms and related ammunition taxes was moved from the IRS to the ATF, but arrows and fishing gear were left with the IRS.
Shouldn’t the question be, why is there a $.43 tax on every arrow? Is the idea to make arrows expensive so people won’t buy them as the argument for cigarette excise taxes goes? Why is there an excise tax on electric trolling motors for boats and fishing tackle boxes (3%) but not on golf clubs?
Oddly enough, conservatives normally cheer any form of tax reduction, but the ~$140M of tax reductions added to the bank bailout bill is suddenly anathema to conservatives. Most of the rest of that $140M was the extension of about to expire tax breaks for R&D and alternative energy and a provision to reduce the impact of the alternative minimum tax on the growing number of people who are getting caught in it’s trap. Dirty rotten scoundrels in the Senate cutting some taxes. How dare they!
It’s kind of hard to swallow a tax cut appended to a 700 billion dollar spending spree. It’s not like they are digging that money out of the vault; they are borrowing it too.
It’s not very fiscally conservative to put an extra 700 bill on the credit card and then cut taxes.
no_slushbox: Sometimes destruction is constructive…Neither bailout will likely be enough to save the big three from Bankruptcy; that is a very good thing for the future of the US auto industry.
Good points!
Of course these little additions were attached to gain votes in one of both houses; would be interesting to know who wanted what. But if the wildly undeserving 2.8 get $25B, I suppose arrow makers should get a cut too. Fairness is part of being American. This is an indication at least that all little wooden arrows aren’t yet made in China.
mel23: Fairness is part of being American. This is an indication at least that all little wooden arrows aren’t yet made in China.
FAIRNESS????
O, please…..
Is there just one wooden arrow maker in the US???
How about all others here in the US who did NOT get any breaks???
So, unleashed. Do you think a $.43 per piece tax on arrows in addition to sales taxes and all the other normal taxes people and companies pay makes sense? Why are arrows taxed this way, but not golf balls?
How did TTAC get a picture of my most recent fishing trip?