Rescue May Not Revive Economy (WSJ)

[struggle4progress]

SEPTEMBER 29, 2008
Rescue May Not Revive Economy
Recession Is Likely as Pillars of Growth Continue Erosion
By JUSTIN LAHART and KELLY EVANS

... "There will be some benefits of this plan, but we think the economy's already gone too far to prevent enough damage," said J.P. Morgan chief economist Bruce Kasman.

Recent news on the economy has been bleak. In a sign that the housing market continues to deteriorate, sales of new homes dropped sharply last month, the Commerce Department reported last week. Another report showed sales of big-ticket items also fell in August, pointing to deterioration in the factory sector and a drop in business spending ...

Economists polled by Dow Jones Newswires expect that this Friday's employment report will show the economy shed 105,000 jobs in September. Meanwhile, consumer confidence is weak and weekly readings on retail sales show that shoppers are cutting back on spending.

Consumer spending is also under serious strain, and is poised to decline during the third and possibly fourth quarter of this year, which would mark the first quarterly spending drop since the 1990-91 recession. Americans are grappling with rising unemployment and higher prices on fuel and food. In the midst of a financial crisis centered on falling home prices and fractured mortgage markets, a 2001-style mortgage refinancing boom isn't in the cards ...

http://online.wsj.com/article/SB122264521775083973.html?mod=googlenews_wsj

[girl gone mad]

1. This is why we need a bill..

that is more than just a bailout.

[Hawkowl]

2. No shit Sherlock

Those of us on Main Street already knew this. What is telling is that Wall Street is finally admitting it. This recession will be worse the Reagan's. Which mean it will be the worst since the Great Depression. The bailout is simply supposed to prevent this recession from eclipsing the Great Depression. Right now I wouldn't bet any money on the bailout. And stop calling it a fucking rescue. How about an intervention? That's what we really need, an intervention with taxes to take away the uber-wealthy's ability to point the money gun to its own head and threatening to splatter the world with gore.

[LonelyLRLiberal]

3. J.P. Morgan is where they invented credit default swaps, apparently one of the big evils in banking

See:

http://www.newsweek.com/id/161199/page/1

(I'll see if I can find the DU post where I saw this.)

[ShortnFiery]

4. Don't do it Congress! There will be Hell to pay.

:grr: