Saturday, January 31, 2009

Worst of recession is yet to come

"As bad as Friday's grim government report on economic growth was, it points to even worse times ahead.

The collapse of exports, industrial production and the inability of companies to sell their products all portend an even deeper contraction as U.S. and global economies sink further in the weeks and months ahead. . . .

Presuming that it lasts beyond May, which virtually all economists now expect, this recession will be the longest and perhaps deepest period of economic decline in the United States since the Great Depression."

In other words, the $825+ billion stimulus package will have minimal effect and will simply put us deeper in debt.

"Don't just stand there, do something" is not always good advice. We need to sit tight, ride out the storm, and put our financial house in order.

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