Are We In A Global Recession?

Many economists and financial experts agree that we are currently in a global recession.

I personally expect mostly negative economic news for the next three to nine months. Consumers are tightening up, adjusting down spending in response to the economic uncertainty and lost net worth in housing and financial markets.

In aggregate, the tax rebates in May, June and July from the Economic Stimulus Act of 2008 did not deliver the desired impact on spending.

While consumer spending stayed relatively flat, personal savings increased by quite a bit more than the tax rebate, leading to a record decline in consumer installment credit in July. I am actually happy to see that; it is a rational response to tough times.

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