Monday, March 17, 2008

Recession Has Arrived, Say 71 Percent Of Economists

According to an economic forecasting survey conducted by The Wall Street Journal, 71 percent of the 51 economists polled believe that we are in a recession. This is in stark contrast to the economic poll done by The Wall Street Journal in December, in which only 38 percent of the economists thought the U.S. were even heading towards a recession. If 71 percent of that same pool of optimistic economists thinks that a recession has already arrived, then it is a safe bet that it has.

Let’s all take a minute to remember that recent, laughable announcement from our President Mr. George Bush stating that the U.S. was not facing a recession. Come on, George. At what data were you looking? I know that you have to keep a positive spin on things, but to flat out say that the possibility of recession was slim was simply lying to the American people.

Now that a majority of economists agree that we are in a recession, the next topic to debate is how bad it is going to be. According to the same survey, the economists put the odds of a deep recession at 48 percent. Looking at how overly optimistic the group has proven to be, it is safe to assume that the real odds are significantly higher The problems in the U.S. economy are so numerous that I must believe that the recession will be hard felt and that they won’t be fixed any time soon.

Investors who have not already begun preparing for a recession need to start now and ask themselves certain fundamental questions. During a full-on recession, job cuts are rampant. Do you have adequate savings to get you through in the event of a job loss? Plan for the worst, but hope that it doesn’t come to that. People must also evaluate their investments. The market is going to be very volatile during a recession. Are you properly diversified? Have you considered alternative investments? Many of these will greatly outperform stocks during a recession. For some investment ideas take a look at NuWire’s top 5 recession investments.

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