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Professor: Economic crisis affecting consumer confidence

WILMINGTON -- Even during these uncertain economic times the Federal Reserve has not yet said whether we're in a recession. There's certainly no doubt the economy is in crisis, and that's due in large part to problems in the financial sector. Many of the problems there stem from the sub-prime mortgage meltdown. Gas and food prices are sky-high and the US dollar is extremely weak against the euro. Economics and finance professor Tom Simpson said, "It's also affecting consumer confidence. People are fearful of what might be happening in terms of their own financial positions, in terms of their employment positions, so that's having an effect on spending." That's the topic of a panel discussion going on right now at UNCW. Three professors from the Cameron School of Business are talking about today's economic climate and what's going to happen in the future. Professor Simpson expects the economy to bottom out within the next few quarters, and then begin to bounce back. The Fed will be sending out economic stimulus checks in May to 130 million households. To receive a payment, taxpayers must have a valid social security number, $3,000 of income and file a 2007 federal tax return. Eligible people will receive up to $600 dollars, $1,200 for married couples. And parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

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What goes up, must come down. It is the ying and the yang effect. Unfortunately, we are in the yang, coupled with rediculous inflation. Simple cycle really. Just like the environment. Sure, we sped up the heating of the planet but it runs on a cycle. It will cool off in time. We won't be here but it will. I

The economy is in crisis?

Ooooh! Could we be a little bit more sensational? The economy has slowed, we are likely entering a recession, and credit is tight while major banks fully evaluate the recklessly loose lending practices of the past five years. That said, the economy is FAR from being "in a crisis".... ....yet....that's not coming for a few more years, when the bills for Social Security, Medicare, Medicaid, TANF, WIC, Food Stamps and Obama/Clinton's next free-lunch giveaway program come due on top of Iraq and the rest of the drunken-sailor spending the Republicans have undertaken in the past four years. I'm sure that Professor Simpson told you that recessions are a completely normal phase of the economic cycle. Oh, but why mention that? The story wouldn't read as sensationally, would it? The professor is VERY right about one thing - people are getting scared because we're talking up a routine recession until it becomes a major event. That's likely by design. The Democrats would like nothing more than making us think the economy is in the toilet when November rolls around.