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Economic news hints at recession

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The latest economic news may bring the "R" word to mind. While few say we are in a recession now, everyone agrees we ought to try heading one off. Just when you thought the financial news couldn't get any worse -- the symptoms of an ailing economy are intensifying. Conrad Dequadros with Bear Stearns said, "There are some conflicting signs right now; my feeling is we are not in a recession; we are in a slow growth environment; our feeling is we will skirt recession perhaps narrowly." Unemployment is up, consumer confidence low. Credit is crunched, the housing market slumped and pains at the pump and grocery store persist. To make matters worse the Federal Reserve says output at the nation's factories, mines and utilities showed no growth in December -- triggering the biggest unemployment jump since 2001. Dequadros said, "What is needed now in the financial industry is capital." Capital that JP Morgan and Wells Fargo desperately need. Both banks said today their profits dropped over 30 percent, and chip-maker Intel reported earnings today below expectations - more bad news for the market. Along with the Federal Reserve, congress is trying to do their part to ease the impact of a recession. Sen. Charles Schumer (D-NY) said, "I think the economy is the number one issue facing this country. People are really worried, even people who haven't been affected. People are worried about the future." A timely, targeted and temporary stimulus package -- that's what Democrats are pushing to quickly circulate money into the economy -- possibly costing between $50 billion and $150 billion. During his State of the Union address on January 28 the president is expected to announce how he plans to revive the economy.

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Recession?

It should be expected. During the boom times prices on everything were raised that are essential to most people's everyday living but their salaries didn't increase by much if any at all. The American Dream (purchasing my own home) in the last 5 years is well out of my price range and most other folks too. 5 years ago the house I rent sold for $27k with $5k of renovations. Now the county & city have reevaluated to $150k. Good for my landlord when she's ready to sell but not good for the average citizen who cannot afford $100k much less $150k. My salary is $20k/yrly and the average income in New Hanover County is $27k/yrly, that's with a college education and no I don't have the resources to move to a higher paying city where it costs even more to live.

The American Dream is

The American Dream is becoming the American Nightmare for a lot of young and middle aged people. Taxes and insurances are pushing this country to the brink of a Depression instead of just a Recession. Let our politicians continue to send jobs overseas and give tax breaks to extremely wealthy corporations by letting them list their headquarters in the Islands. Salaries need to be increased and jobs brought back that pay better than Walmart or warehouse workers for $8.00 an hour. Too bad there is not one Presidential candidate who is electable (Clinton, Romney, McCain, Obama) that has addressed these issues. Looks like another 4 or 5 years of pathetic wages and no savings for retirement. Oh well, say goodbye to this "Great" country.

recession

Evidence is pointing heavily at a recession, homeowners insurance up 30% (and no hurricanes for several years, auto insurance going regardless of your driving record, rates up, gas UPPPPP, which has driven, food, tires, etc up...all but wages that is ..and our wonderful City Council can only think of raising our taxes to pay for their problems..and we do not even get a say so..what a democracy...It is sad when you have lived here all of your life and it is getting to the point Wilmingtonians cannot afford to live here anymore...I sure won't stay here if we are annexed! I will not support such a greedy city that does not care what it is doing to the people that live here..only their own pockets..

They need capital?

"Capital that JP Morgan and Wells Fargo desperately need." Before making such a statement, I'd suggest that you take a look at the cash reserves these two banks have on hand. Both of these banks have more than enough to weather the current storm, which, by-the-way, is being talked up into a hurricane by Democrats and liberal economists who will push their professional ethics to the back burner for the sake of their left-wing goals. There are lots of Chicken Littles out there, but large hail doesn't mean the sky is falling. But oh, what a great issue for November...even if it is more than a bit exaggerated! (Sad to say, they're succeeding in their goal...) Yes, the economy is slowing, but slow-downs and even recessions are just as much a part of the economic cycle as the boom times. We're not teetering on disaster, and the LAST thing we need is the government to increase the deficit by creating some politically awesome (but economically inconsequential) giveaway. With few exceptions, history has shown that the one thing more injurious to the economy than high oil prices or inflation is politicians trying to tinker with it to . Meanwhile, smart people are taking some of their profits from oil and buying the really strong banks which Wall Street has beaten into the basement along with those that should be in the basement. The strong, well-capitalized banks are not going anywhere. Their stocks may not be a sky-rocket ride to riches, but in years to come, you'll be very glad you bought the banks while they were cheap.