In-Depth Look: “Recession of Choice” (Video)

April 14, 2008

Apr. 14, 2008. 08:39 AM EST

Analysis and Discussion with Lakshman Achuthan of Economic Cycle Research Institute

Transcript:
our next guest says elieves the slowing conomy is in gony ituation never seen before. is the managing artner conomic ycle research institute. > what do you ean es, different iew. any eople re glossing ver his will we look back t the antecedents of why we are ere it is bvious t is redit issue n a housing ubble. s recently s a ew weeks go, iterally, ecession as voidable ecause ll of his premature essimism we have had. his could e the orst orecast ever. here have een ecession forecasts ince 005 nd the effect of hat f saying ecession have ad usiness anagers playing verything close to their hests e talked urselves into t? it s more omplicated han that. veryone has ad ow nventories for years. hen, ad acceleration four- igh, ushing nventories low. his is mportant ecause over alf he ecessionary impulse of the decline that ccurs ith job osses, he roduction declines, it omes rom manufacturing ector. at was irtually bsent rom the cene in recent onths. policy aker nderstood this and could o anything, ny out of he box hing oost boost onsumption or a moment that immediately ifts roduction and orestalls firing. we would not be ere hree months ob losses. s a ecessionary piral. hat hy the ecession s a choice. m not saying did you did not have to pay the piper or the credit ebacle or he housing ouble. you ust, but you could be paying that iper s some breathing room. ecession will ake these hings worse. chovia is an xample. e is surprising everyone. these re mart people who were urprised by a pullback. at is a recession. he use easures e had not een since the great depression here ere a arge institutions trying o run interference? bsolutely, hat they have one n a recent weeks orthy of praise. hey id hat must be one. therwise here would have een a bigger problem. hey ave to make p for he act that they were ehind the curve which ade ll these hings worse. iming is key. point that he one person was king s that ou do ot lowly fall into ecession, you ump into it. the rompt timing f policy to vert it s so ritical. as a esult rom ot eing quick nough e will pay much more. erms f how o get out it. n the campaign rail here are a lot f proposals about bout how o spend money. what do you take bout advance etail ales? it is nly one month, but you oo ense etter than expected. - you aw2/ etter. > with asoline sales, hat ve where ge appliances fell. hen you add his up ith roader industry ales, you will till see a luggish if ot contracting economy. slice he conomy, almost two-thirds. usinesses are really ulling back. you ave to leave s with positive note. when does urn round? we’ robably a ew onths into this one. here’ s a oundation f all his liquidity oing in to boost the economy. ater down the oad we will ave to worry bout nflation, not yet. ed till has room to anage it. s there going e cut? > more than ou hink rom these guys. it is bout ighting the recession now. nflation eaked a nths into the ecession with he post- ecessions. >> thank you.

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With US in crisis, global economy in peril: IMF

April 9, 2008

The global economic outlook is becoming increasingly grim as the United States appears unable to escape recession from a housing meltdown whose effects are still spreading, the IMF said Wednesday. Global expansion is set to slow to 3.7 percent in 2008…

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World Economic Outlook is gloomy (Video)

April 9, 2008

The IMF forecasts a gloomy outlook for the world economy in its latest report ahead of the spring meetings of the IMF and World Bank………one of the latest updates from Feature Story News bureaus worldwide. On the web at www.FeatureStoryNews.com @ 2008 Feature Story News

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