Who thinks we will still have a severe recession this year? why?
Answer:
Personally and from what I've heard, no. I think it is fairly clear that the economy will not have a severe recession. This can be seen in Bernanke's comments, and the fact that we have seen economic growth with low inflation. Companies have been reporting good earnings reports, showing that demand still is strong, and their forecasts for this upcoming year have been mixed, with technology forecasts mostly lower than expected. However, even with a minor slump in technology, do not expect to see a severe recession this upcoming year. Also remember that Windows Vista is due out soon, which should help pick up tech. A severe recession coming would see largely negative forecasts in company earning reports, and that's just not what we see.
The main question is whether the economy will experience a recession, which is defined as two quarters of negative growth. Many economists cannot agree on this, although the majority believe that it will not. It ultimately depends on whether the Fed will raise or lower interest rates this year. Most agree that the Fed will stay off interest rates for some time, and many believe that they will in fact lower interest rates half way through the year. If they raise interest rates due to rising inflation, there is the possibility that we will experience a minor recession. However, this is conditional on what the Fed does.
I hope not. I'm already broke.
It could happen as prices are rising & interset rates are going steadily up without an increase in peoples incomes. The UK is becoming more & more reliant on imports when we should be producing.
Interesting Question Jimmy , I think it will gather pace from the Middle of 2007 and really get serious in 2008 and 2009 .??? No Doubt BLAIREMAN AND "ROBBING" will be exposed for the pair of Bastards they are ??
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