NY Times: A Wave of Worry Threatens to Build on Itself

[marmar]

By MOTOKO RICH and NELSON D. SCHWARTZ
Published: August 8, 2011


Employers delaying or suspending hiring. Home buyers getting cold feet. Shoppers pulling back on spending.

Hesitation is weakening the American economy, as Monday’s disastrous day on Wall Street reaffirmed what many companies and ordinary Americans have been fearing for weeks: this is too tumultuous a time for businesses or households to be contemplating expansion.

Just a few months ago, analysts were predicting that the economy would grow about 4 percent this year. The forecast is now closer to half that number as a wave of pessimism sweeps the country.

“Everybody gets into this hangdog demeanor with respect to economic expectations,” said Paul Laudicina, chairman of A. T. Kearney, a consulting firm. “People sit on their wallets because they feel like everything is going to get worse, and things get worse because people are sitting on their wallets.” ............(more)

The complete piece is at: http://www.nytimes.com/2011/08/09/business/economy/frozen-by-uncertainty-economic-action-stalls.html?_r=1&hp

[LiberalEsto]

1. Well, the corporate media is fueling the fire

Front page of the Washington Pest today:

"Worst day for world markets since '08"
"London unrest escalates, spreads"

it's like they're saying "Let's everybody go freak out 'n' panic now"

[Bragi]

2. And you'd prefer reassuring calming words? /nt