God bless America! I hope the difficult times ahead are short and quickly recoverable.

its all that no good bill clinton's fault. reelct mcbush. go jazz.

The answer is living within their means, the government, businesses, and the people. The reason we are in this place is instant gratification. Some debt is almost always a good thing but to many people are not saving and to many people live off their debt. I believe the tightening of credit is a good thing for awhile and it should never reach the poin it was during the past 7 years. there is a reason you do not lend large amounts of money to the family member that never pays you back!

This is the bottom for this slump according to many economists. Optimism will always prevail. Unfortunately the pessimist's glance is always more exciting than the optimist's stare.

The weak dollar was caused simply by two factors. The United States gold rush of the 21st century caused and raised to a fervor by people with vested interests in the price skyrocketing. And secondly the federal reserve and the banking institutions have and always will decrease the value of and inflate the dollar. Restore our monetary system to the divinely inspired guidance of the constitution and we won't face the problems with the dollar we are having now.

It seems like a lot of the media have been calling for a recession since GW was elected in 2000. Even when things were really good over the last 6 years. I have faith in this economy. The best thing Congress can do is to make the Bush tax cuts permanent. That would give investors a lot more confidence to invest in American companies

When we bought our home six years ago, the gas prices were about $1.00 a gallon, our average gas bill was $575 for the entire winter and our electric bill for the winter was under $100 a month. Now gas is over $3.25 (again), our heating costs average $225 a month for gas (more than doubled)and thanks to our state legislatives for allowing a monopoly in electric to exist, our winter electric bill has been $500 a month. We paid over $8,000 on electric last year because over a 59% increase was allowed by legislation and we cannot do anything about it. We're not going on any vacations, let alone elaborate ones; we do not eat out or spend money like there's no tomorrow. We cannot budget in for what we have little control over. I'm sure that there are many millions of people like us who have been frugal, who watch their pennies and who have taken a bad hit in this economy that allows the companies to make record profits off the backs of the American people. The eceonomy can and will recover when the corporate greed stops bleeding the people dry. Give us a break!

After reading the down turn in the United States Economy, we are in for the long way down the path of a depression with a dollar that is worth less to spend. The American Indrustural markey is not up to speed, since we are depaending on oversea to buy our goods and services while american become uneployed this is very bad to the country. Why does the President do what many did in WWII in getting american back to work. We can do it by starting CCC camps for the youth and college students to work off their college loans. Stop buying oil from the middle east. We must go back on the Gold standard to aid our dollary with value.

A tax cut for the rich? So that our debt can go even higher (though that may almost be impossible)?
NO. NO.

We will overcome this recession when we pull out of the war in Iraq. A nation cannot continue to spend money on things that are non-productive: is it 8 billion a month now on Iraq alone? Military costs, they do not pay. We are now caught on our own petard of invading a country that did not pose a threat to us, and then sticking around to keep them from killing themselves.

Why would we do this? OIL.........

I hope the recession is short, but I fear the worst is coming. You can read it in the tea leaves.

I would sincerely like to know just how the economy can turn around when:

nothing is manufactured in America (except weaponry)
we're in debt to our ears to red China
the value of the dollar is dropping each day
the CEO's running the country are looking out for themselves and their special interests only
the graduating classes are bigger than the one's before

Pamela, Please tell us where you bought gas for $1.00 a gallon six years ago??? As far as I can recollect its been 20 plus years since gas has been that cheap.

Obviously the answer is to outsource ALL middle class paying jobs. That will continue to give the illusion in Wall Street all is well. Companies are generating profits and executives can continue to reap the benefits of the economy we have had since the begining of the decade. Hundreds of millions to those who have the most, crumbs for the rest. All until the middle class with no pay, no home equity, and going quickly through the only money left...retirement, can no longer afford to spend.
Don't look now folks, but it's here! It's all well though, we will soon receive that $600/tax payer in the mail from Uncle Sam and all will be well again.

After nearly 8 years, at least some of it must not be the clintons' and liberal medias' fault.

Good one, Milker. It just has to be the liberals fault. They've been in power for so long now. What a hoot. Stop spending in Iraq and that will help tremendously.

Just a Guy,

I bought gas for .95/gallon in 2001 in St. Louis, MO. My father-in-law was visiting from Utah and couln't stop grinning.

I laughed out loud when I read the quote from Greenspan. Talk about getting it straight from the horse's mouth. He facilitated the housing bubble. He knew it was going to go South, so he turned the reins over to Bernanke. At least Bernanke is a student of the Great Depression.

You are crazy if you think we have seen the beginning of banks writing off bad debt. The rating agencies rated junk debt as AAA. No one knows what is what right now in the banking/financial industry. There will be more Bear Stearns stories in the coming months/year(s).

One poster stated that we have hit the bottom of the slump according to many economists. Please name the economists. I don't think there are any reputable economists who would say such a thing right now.

People need to live within their means with some room to spare.

When I read some people complaining that they have $225 per month gas bills and $500 a month electric bills, it sounds to me as if they live is a huge home. My highest bills are $120 for gas and about $85 for electricity and that's on a 2700 sq. foot home.

I see people building these 5000 sq. foot homes that cost at least half a million dollars. They have payments over $4000 a month. Then when the economy turns south slightly, the increases in expenses puts them over the edge.

People need to live modestly and have some room for unexpected expeneses. If everyone did that, we wouldn't have this economic slowdown right now.

This has a lot to do with the War in Iraq as well. Bush has funneled so much money into the military & this war "so we can fight them over there & not over here" that the country is struggling to sustain itself.

As usual, Bush got his buddies a ton of money through oil, as the prices rose only when he got into office. His message of becoming independent of oil was only lip service.
Failed policy + failed planning = a stuggling country.

I am very concerned to read about your financial woes in the US. Up here in Canada housing prices are souring through the roof. Two years ago my house was worth $75,000.00. Now I can get $170,000.00 for it. I am worried about my children being able to afford a home when they get out on their own. Add the high costs of an education to that and I see a big mess for them. Things are booming up here. Can't find enough trades people but how long will this hold out? Will we find ourselves in your situation in the near future? I do not know. Gas is $1.16 a litre ($4.60 per US gallon) up here because of world oil prices but wages generally have not kept up.

I'm not sure how, but this has to be the fault of the Democrats. I'm also sure that Bill Clinton is behind it all, probably in league with some left leaning wackos, communists and socialists. A new war or two would stimulate the economy, so invading Iran would be a smart move right now. We could create more jobs building weapons, and we could get rid of some of those "evil doers" as well. We could also use a "Decider" about right now, probably someone aligned with big oil who could get those gas prices down. So Bush should appoint a Decider Czar. Oh, and we need to just stay the course. Things are actually pretty good, so I think we should stay the course, fight them over there so we don't have to fight them over here, because they're either with us or against us. So go out and spend, buy a new house or two, another SUV and fill it up. Just keep spending and you'll see the light of trickle down economics. Oh, and we need another tax cut for the rich. We all know rich people are righteous, so they deserve another tax cut. Thank you.

Clintons last summer in office gas prices went up to. Gas prices is not all GWB's fault. Supply and Demand works.

Sorry CountryMan, this has nothing to do with the war. In fact, this has little to do with government. This has to do with the fact that we, the American people, have been overspending and living higher than we should, or deserve, for many years. Each of us, in the walls of our own homes, need to get our financial affairs in order. We need to get out of debt, live on less than we earn, and save for a rainy day. Sound familiar??? We have been buying homes we cannot afford. It's now catching up with us. I'm afraid it will take time to get out of this mess we've gotten ourselves into. But we can start by only buying those things we can pay for. Get rid of those credit cards. If you can't afford the house, get out of it. If you can't afford the energy costs, get out of it. Let's stop whining and show a little of the backbone this country was built on.

I was dating a girl in SLC, Gas was .99 gallon in Salt Lake. Gas was $1.04 in Provo. NOT 20 YEARS ago!

SIX YEARS AGO PEOPLE! GAS WAS $1 A GALLON!!!!

SIX YEARS AGO. OIL COMPANIES ARE STILL

MAKING RECORD PROFITS.

To Idaokie: yes, many of the economic problems we're having come from the invasion and occupation of Afghanistan and Iraq. Check out "The Three-Trillion Dollar War" by Joseph Stiglitz. The other parts of the equation consist of the profligate spending by the Bush administration and congress (both parties), and ESPECIALLy the policies of the Federal Reserve. Creating money out of thin air is the source of price inflation and the devaluation of the dollar.

Ireland and southern Europe are heading into downturns due to the collapse of their inflated housing markets. Obviously that's because they all invaded Iraq.

Oh, wait....

Gas was .99 in Sacramento within the last 9 years.

The Fed drove the economic boom. Then the Fed caused the bust. Now the Feds are trying to "fix" the economy, but will just make it worse. The best long-term solution is for the Feds to get out of the economic manipulation, market control, and monetary policy game. There will be some short-term pain, particularly for those that made poor choices. Why continue to punish the forgotten man (who pays the bills) to reward the foolish man?

There are 1.3 billion people in China. Car ownership is currently at 24 cars per thousand people and is expected to rise to 40% per capita by 2010. These growth rates are likely to continue into the foreseeable future. The USA has 765 cars for every 1000 people.

It really doesn't matter if gas was $1 six years ago and it doesn't matter if our oil companies are making substantial profits. World pressure on oil will keep our prices high and will force them higher. We may have short term dips, but there is no going back.

Hey, I've got a swell idea.
Let's focus on what Thomas focuses on (in this case, Ireland and Scotland.
That way, we won't have to worry about where the jobs are going to come from here.

Anyone who thinks that pulling out Iraq now will solve our financial crisis has no idea what they are talking about. Historically our nation has entered a recession after a treaty is signed because wartime productivity is great fuel for the economic engine. Do any of you have a clue how much business our nation's large high-tech contractors do with the military? If you think it's bad now, just pull out of Iraq and watch while Boeing, Northrop, Lockheed and the other big boys start laying off by the tens of thousands. Leaving Iraq now truly will bring about the next great depression. Our nation and Iraq must have greater internal stability before the idea is feasible.

Point fingers at the government all you want, but it's not their fault. GREED is the only thing to blame. People wanted bigger McMansions, and banks financed people they should *not* have financed. It's not the government's fault that these banks made very poor business decisions. Going back to the gold standard will do nothing for the economy. Banks and people making wise and prudent business decisions, and living frugally, will.

Sounds like you need to downsize to a smaller house. We have plenty of room in our 2500 sq.ft. house (this square footage includes our finished basement) for our family of five. Our gas is around $100 a month or less in the winter and electric $120 or less.

as always with Thomas, all things PUBLICAN are good.

When Bush was running, he chastized Clinton for allowing oil to hit $30 a barrel.

The dollar was strong, the U.S. was respected, Clinton paid down Reagan and Bush Sr.'s debt and left a surplus.

Outside of giving a huge tax cut for you Thomas, and others making more than $200K, what has Bush done that was right?

started a war?
outsourced a no bid contract to Haliburton?
outsourced defense to Blackwater?
increased the price of oil due to weakening of the dollar?
Increased the deficit by $3trillion?
Chased down Osama, then got bored with that?

Oh yeah, I remember, he read a book about a pet goat to some kids in school.

Then he said; "Is children learning?"

c'mon Thomas, just one redeeming act by Bush?

Yes! And our non-relevant, head-in-heaven, reality dissociated self-important president Lil' Bush maintained and asserted that, "We're not in a recession folks, it's just a economic downturn..."

Yup! And there are tooth fairies, easter bunnies and leprechauns... literally I mean! No Really! If Bush can believe what he believes to be literal, then I can believe in all the fantasy stuff too. Oh... you think that makes me crazy? Ok, I'll agree with you, but then... you'll have to also admit that Bush is just as crazy with his own form of fantasy based thinking and detachment from reality.

Thank God November is coming. Maybe we can get back to a more reality based political and economical basis that will be more accommodating to middle class American needs.

Oh, by the way, consider this little fact. Venezuela's per gallon cost for gasoline, after currency adjustments, is equivalent to $0.27 per gallon. That's what Venezuelans pay for their gas. Hmmm... Maybe nationalization of America's oil industry wouldn't be such a bad idea after all, given the gutting of middle class America big oil has foisted on America and its economy.

Yeah! Thank you SmartGirl. You really are...uh-h..smart. Well said.

I agree with the greed theory. International and domestic greed is very destructive. The economy is complex though and can turn on a dime. We would be wise to pay off our debts, starting with credit card debt. It can be done, right down to paying off the house. We should produce something (not just consume)..Plant some fruit trees, berries, a garden. Put the extra in jars and store them. Share with your neighbors. Learn how to make bread...store the ingredients for bread and soup. We really don't know what is going to happen in the future, some good, some bad...but it is a good feeling to know that we don't owe anyone and will have a roof over our heads and have something to eat no matter what happens.

SmartGirl must not have noticed that there is an unholy alliance that has been formed between corporate and governmental behemoths that today controls our airways, educates our children, and manages every facet of our lives.
This includes the global economy.

What people have totally forgotten is how members of THE BIG CLUB (to which we are NOT members)manipulated the situation to their advantage and like in the Great Depression when half the country was just getting by or not getting by at all, millionaires were being made by the sackful.

To SmartGirl: all I can say is wow. And what planet is all this happening on?

Lets just party like its 1999

Happy Airhead: Bush is correct. We're not officially in recession. There need to be recorded two consecutive quarters of negative economic growth to constitute a recession.

Like it or not, that's the official measurement. Can the sarcasm.

That said, we are absolutely positively no doubt about it heading into a recession. A bad one.

......and I'll say it again: Get in line now for your electric car.

With the weak dollar and ever-increasing worldwide demand, oil will go nowhere but up over the long term. Just this morning a leading oil industry expert said "don't expect the current swoon in oil prices to last." That's right, $101/barrel is a "swoon". Just last year $100 was considered impossible.

What new heights for oil do you think will be "impossible" next year?

And Airhead, you've got a lot to learn about the gas situation in Venezuela. Gas there is heavily subsidized by the government. It's the only way Hugo Chavez can keep the people happy (and even that's not doing a good job lately). The true cost of gas in Venezuela is more on par with what the rest of the world pays. Are you saying you'd like the government to subsidize 90% of our gas in the U.S.?

I think it is time to start thinking about the important things again:
Nature
Art
Music
Philosophy
The fellowship of Man
Get a jump on everyone else as your buying power erodes a little more each month -
Bring on The New Renaissance!

You asked "Tax cut for the rich?"

Unfortunately Democrats ahve spewed such nonsense to the point that many are starting to believe it - they also define the rich as anyone making minimum wage or more. Is it bad to give tax relief to those who pay taxes, those on that extreme lower end don't pay taxes anyway.

Time to let families spend and save what they earn instead of having government take it to spend of pork.

Unfortunately Republicans have spewed such nonsense such as "everything is fine and dandy under this Republican administration" that many still believe it.
Meanwhile bankruptcies, home foreclosures skyrocket and people continue to lose their jobs.

We've become gluttons. That's the problem. Consuming more than you need and spending more than you make. It's not sustainable. Have you ever looked around and thought "How can they afford that?". The answer is... they can't. Now we're all paying for it. Unfortunately, financial institutions have enabled the exccessive spending. The recession will only end when financial institutions refuse to loan anyone more than they can afford and people have been hit so hard that they no longer expect to have more than they can afford. In other words, we have to be broken.

Even Warren Buffet (you know, that super rich guy)said that it was ridiculous that his secretary had a lower tax rate than he did.

Have we forgotten?

Money was established to record an hours worth of work of one person in exchange for an hours worth of work for another.

Speed ahead to today .....

About 50% of our time (income) is spent for taxes.

Go to the hospital for a half-hour procedure, and you'll work a full year or more to pay the bill.

Lastly, we teach our children wrong --- that credit is good. Banks just love that kind of teaching!

America has turned into no less than a complex, manipulated money machine, distorting the original, "You work an hour for me and I'll work an hour for you."

Check what you've bought lately. How much was made or grown in America? We have lost it. If we bought a small TV totally made in America today no one in America could afford it. We have to be supplied by the rest of the world using literal slave labor to make our TVs today. We have ridden and relied on a slave labor market for so many years now, that America can no longer stand on it's own two feet.

Judgment day is finally here.

You are mistaken about Warren Buffet. He has become quite a humanitarian in his old age. Too bad he didn't see the light before all of his kids decided to hate his guts.

Warren Buffet actually supports a progressive (the richer you are the more you pay) tax structure.

Look at it this way (and this is going to make the conservatives crazier than they already are) perhaps Karl Marx was right all along when he said "Capitalism be its very design is doomed to fail sooner or later."
Now don't get me wrong. I enjoy what capitalism has done for me. But when it becomes so out of whack and people are getting even richer than before off the backs of the little guys who are just getting by or not getting by at all - something has gone wrong.

Re: re: re: re: re: re: Russ -- I think the guy a few "re's" back meant to quote Warren Buffet as saying it was ridiculous his secretary had a *higher* tax rate than he did.

Which is an excellent argument for a consumption tax with a large personal exemption. Discuss.

". . . the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." FDR, March, 1933.

Can one of you journalists explain whether it's good journalism to -- as this very article does -- heavily stress the negative, emotionally entice empathy with quoted hard-luck stories, then barely mention that all statistical economic indicators are still good?

Why not at least note that inflation is below historic norms? Or that joblessness is at all-time lows? Or that, gas prices, when adjusted for inflation, are not out of the historic ballpark? Or even that 96% of mortgages are current? Why not mention that pollsters repeatedly note that surveyed people seldom express concern for the economy's effect on their own lives, rather, that their fears are for the other guy?

Why not give it the name President Rooselvelt gave it all those years ago -- "fear itself?" And why not mention that it might “paralyze needed efforts to convert retreat into advance.”

What agenda leads the media to bias their coverage of the economy toward fear itself?

Hmmmm.

Prosecutor, maybe it's because Roosevelt didn't know what he was talking about. Economic fears in the 1930s weren't irrational -- they were a reasonable response to the quite accurate perception that government had acquired vast new powers to affect the economy that it had no clue how to use safely -- and had proven itself capable of distorting the economy beyond the ability of even the strongest private capital to hedge against.

We're in the fix we're in because the Smart Guys on Wall Street convinced themselves that if you divide risk up into small enough pieces, you can ignore the First and Greatest Commandment of finance, namely, Thou Shalt Not Lend Somebody More Than He Can Repay.