Thursday, January 10, 2008

recession is now

Well, are we in a recession? That appears to be the case. Analysts are saying that we are already in a recession due to the housing crisis and the current onditions will get worse over 2008 and 2009. A sad tale is that in the 1930's it took years for the economyto recover.

The subprime scenario led to a mortgage meltdown that froze liquidity and may cause banks to fail as more and more properties go into foreclosure. This will crush many states as the property values go down so do tax rates. As people become unemployed the federal government will see less money from income tax.

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