Its an official recession! Woot!

BanningZ · 12-01-2008, 08:40 PM

The NBER made it official today we are in a recession

(as if you couldn't figure it out already), and have been since December 2007. After official word was released the Dow Jones industrial average dropped 679.95 points

, or 7.70 percent, to end at 8,149.09.

Buckle your seat belts,....this is gonna be one sh1tty ride.

Quote:

WASHINGTON (Reuters) - The U.S. economy slipped into recession in December 2007, the nation's business cycle arbiter declared on Monday, and the downturn could be the worst since World War Two.

The National Bureau of Economic Research said its business cycle dating committee members met by conference call on Friday and concluded that the economic expansion that started in November 2001 had ended. The previous period of economic expansion, which ended in 2001, lasted 10 years.

The current recession, which many economists expect to persist through the middle of next year, is already the third-longest since the Great Depression, behind only the 16-month slumps of the mid-1970s and early 1980s.

"I think that we've got a ways to go, that this is going to be probably a deep and long recession," Jeffrey Frankel, a Harvard University economist who sits on the NBER's committee, told CNBC television. "It could be the worst post-War recession. We don't know yet."

The NBER does not define a recession as two consecutive quarters of decline in real gross domestic product, as is the rule of thumb in many countries. Instead, it looks for a decline in economic activity, spread across the economy and lasting more than a few months.

The current downturn was particularly tricky to define because GDP remained positive in the first half of 2008. The NBER said its committee looked at payrolls, which peaked in December 2007 and declined in every month since then, as well as real GDP and other data to determine when the recession started.

"The committee determined that the decline in economic activity in 2008 met the standard for a recession," the NBER said in a statement. "All evidence other than the ambiguous movements of the quarterly product-side measure of domestic production confirmed that conclusion."

STIMULUS PACKAGE

The White House acknowledged the NBER's declaration, but said that did not change its course on coping with the financial crisis that has raged since August 2007.

"The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that's where we'll continue to focus," White House spokesman Tony Fratto said.

President George W. Bush is the first president since Richard Nixon to preside over two recessions.

Several key Democratic lawmakers said the NBER's pronouncement underscored the urgent need for another dose of government spending to kick-start the economy.

"The announcement simply makes official what we have long known -- with rising costs of living, rising unemployment, record foreclosures and depleted savings, we must do more to help families make ends meet," Senate Majority Leader Harry Reid said in a statement.

"With the cooperation of our Republican colleagues, we intend to send a (fiscal stimulus) plan to the White House as soon as possible following President-elect (Barack) Obama's inauguration next month," he said.

Lawrence Summers, one of Obama's top economic advisers, said the pace of the downturn was "accelerating."

"That is why President-elect Obama has set as his top priority passing an economic recovery plan," Summers said in a statement.

Democrats in the House of Representatives will likely seek a stimulus package costing about $500 billion, a Democratic aide said on Monday.

The NBER is well known for taking its time in declaring when recessions begin. The group did not declare March 2001 as the start of a recession until November of that year, which the group later pegged as the end of the downturn.

Economists polled by Reuters expect the U.S. economy to contract in the first half of 2009, and then grow modestly in the latter part of the year. If the economy continues to contract through June, this would most likely rank as the longest recession since the 1930s.

Outrun · 12-01-2008, 09:23 PM

Wonderful!

CrownR426 · 12-01-2008, 09:29 PM

There goes my fully loaded 370z!

dad · 12-01-2008, 10:11 PM

F**k it! I'm going to enjoy the Holiday Season and Christmas!

AK370Z · 12-01-2008, 10:18 PM

Quote:

Originally Posted by dad

F**k it! I'm going to enjoy the Holiday Season and Christmas!

BanningZ · 12-02-2008, 01:19 AM

Look at it as a positive. If you save and spend right it can be to your advantage. In a recession, prices get dramatically lowered because there is less demand, and there far less people buying. If you can catch it before the quick, you can make some bad aZZ deals before production gets reduced to compensate for less demand.

I'm still buying my frickin' 370Z I don't care what any agency or research bureau says. Fcuk em'.

Nissan370z · 12-03-2008, 12:02 AM

Quote:

Originally Posted by BanningZ

I'm still buying my frickin' 370Z I don't care what any agency or research bureau says. Fcuk em'.

+1

Tell the Recession to

Maynard · 12-03-2008, 08:12 PM

I hope this recession is short lived. Poor sales killed the Supra, RX7, and 300Z. I'd prefer to see the car companies thriving so cars that aren't high sales cash cows (like performance oriented cars such as the 370Z) , don't get the axe. The 370Z is a new model, I don't think its in danger anytime soon. But think of it this way, the more successful performance cars are, the more companies will want to make them (at all price points hopefully). The more companies will want to make them, the more competitive the market is, giving us consumers more choices and hopefully more quality.

CrownR426 · 12-03-2008, 08:37 PM

Looks like no more smoking up for me.
Or... I'll cut down significantly :<

ctzn · 12-04-2008, 02:23 PM

Markets are down, fear permeates through the masses...

time to invest.

BanningZ · 12-04-2008, 05:30 PM

Quote:

Originally Posted by ctzn

Markets are down, fear permeates through the masses...

time to invest.

X2

RCZ · 12-04-2008, 07:53 PM

Its the time to invest ladies and gentlemen. Amazing deals out there. Solid companies offering short term bonds with some very attractive yields.

12-01-2008, 09:29 PM	#3 (permalink)
CrownR426 A True Z Fanatic Join Date: Nov 2008 Location: South Korea Posts: 4,676 Drives: Manual Rep Power: 848	There goes my fully loaded 370z! __________________ Love + Hardwork + Passion RIP SVTRacer

12-01-2008, 10:11 PM	#4 (permalink)
dad Grand Prix of Endurance Join Date: Nov 2008 Location: Tennessee Posts: 3,476 Drives: Mulsanne Straight Rep Power: 26	F**k it! I'm going to enjoy the Holiday Season and Christmas! __________________ We can do without any article of luxury we have never had; but once obtained, it is not in human nature to surrender it voluntary.

12-02-2008, 01:19 AM	#6 (permalink)
BanningZ A True Z Fanatic Join Date: Nov 2008 Location: nowhere Posts: 5,478 Drives: 06' Nismo Frontier Rep Power: 29	Look at it as a positive. If you save and spend right it can be to your advantage. In a recession, prices get dramatically lowered because there is less demand, and there far less people buying. If you can catch it before the quick, you can make some bad aZZ deals before production gets reduced to compensate for less demand. I'm still buying my frickin' 370Z I don't care what any agency or research bureau says. Fcuk em'. Last edited by BanningZ; 12-02-2008 at 04:09 PM.

12-03-2008, 08:37 PM	#9 (permalink)
CrownR426 A True Z Fanatic Join Date: Nov 2008 Location: South Korea Posts: 4,676 Drives: Manual Rep Power: 848	Looks like no more smoking up for me. Or... I'll cut down significantly :< __________________ Love + Hardwork + Passion RIP SVTRacer

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