Forecasters see weak economy, higher unemployment

http://apnews.excite.com/article/20080519/D90OLA1O0.html

May 19, 6:19 AM (ET)

By JEANNINE AVERSA

WASHINGTON (AP) - First the good news: The worst of the painful housing slump and the credit crunch might come to an end this year. Now the bad: The economy will weaken further and unemployment will rise.

That's the latest outlook from forecasters in a survey to be released Monday by the National Association for Business Economics, also known by its acronym NABE. It will take time for any rays of light to poke through the economic clouds, though.

A growing number of economists believe the country is on the brink of a recession or in one already, dragged down by all the problems in housing, credit and financial markets. Now 56 percent of the economists think the economy has started or will enter a recession this year. That's up from 45 percent in a survey in February. If there is a recession, it probably will be short and shallow, economists said.

Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2 percent last year, will slow to 1.4 percent this year. That's lower than the 1.8 percent growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.

Next year, the economy should grow by 2.3 percent, less than previously forecast and a pace that is still considered subpar.

"Although housing and credit markets will gradually loosen their grip, U.S economic growth is expected to only slowly return to health," said Ellen Hughes-Cromwick, president of NABE and chief economist at Ford Motor Co. (F)

FULL story at link.

Damn republicans, may son is having enough trouble finding a decent job.

problems. Our debt increases. They are bankers and oil people. Republicans rob us of our wealth and future.

I have always wondered if the world bankers hadn't loaned the money to Germany and Japan (who already had huge debt) would WWII even have happened? As a kid we used to see those WWII news films over and over when we went to the Saturday matinee. I used to think...where did they get all that money for tanks, airplanes, etc.? Same today with our huge debt, etc.

The American bankers loaned the Nazis money to build those camps in Poland. It has been said the war continued longer than needed for the profiteers. I'd believe that after seeing what they have done with Iraq. Iraq has lasted longer than WWII and cost us more than a world war.

It has been said that WWII brought us out of the Depression because of war profiteering, etc. I don't see that today as remotely possible because Halliburton, etc. profits go off shore. Our tax dollars bleeding away to other countries. It is treasonous in my mind to do that during "war and terrorism".

Citizens never want to go to war. The government convinces them by using lies and propaganda. The elite send other people's children to war while they profit.

Am I cynical? Yes.

:kick: