Entries in Double-Dip Recession (3)


Economist Group Says Second Recession Is Here, If Not Close

Comstock Images/Thinkstock(NEW YORK) -- The doom and gloom crowd is predicting that the U.S. economy is heading toward another recession, perhaps worse than the one that began in late 2007.

But the Manhattan-based Economic Cycle Research Institute is doing the naysayers one better: it says the second recession is already here.

Lakshman Achuthan, the institute’s CEO, claims that if that particular prognostication is wrong, it merely means another recession is right around the corner.

The Economic Cycle Research Institute has had a pretty good record in forecasting economic downturns, having been right over the past 15 years.  A recession is typically characterized by two or more quarters of declining gross domestic product.

Meanwhile, Achuthan says that if Americans think the unemployment situation is intolerable at the moment, they're in for a rude awakening.  He believes the jobless rate will reach double digits, resulting in more misery for the millions who've been out of work for months and years and new hardships for many still working.

Copyright 2011 ABC News Radio


Economists: One-in-Three Chance We're Headed for Recession

Comstock Images/Thinkstock(NEW YORK) -- How close is the U.S. to slipping into another recession?  According to several economists polled by The Wall Street Journal, the chances of that happening over the next 12 months are one-in-three.

The Journal says the latest odds are the highest it's recorded since the country's economy began to recover.  They are also up 4 percent from the previous poll taken in August.

Most economists polled believe the Federal Reserve will make more moves to help boost the economy but doubt any such action will result in growth.

Copyright 2011 ABC News Radio


Dow Drops below 11,000; Fears Rise of a Double-Dip Recession

Mario Tama/Getty Images(NEW YORK) -- The Dow Jones Industrial Average fell by as much as 5 percent after the market opened Thursday and by midday had lost more than 400 points, enough to dip the average below the 11,000 point mark. The Nasdaq was off by more than 100 points at midday. The S&P was down nearly 50 points.

The markets are being hit by concerns about economic weakness in this country and overseas.

Is a double-dip recession on the horizon? Financial analyst Hugh Johnson says that is what's worrying investors -- causing stock markets to fall again Thursday.

"It's really a lack of confidence in the U.S. economy and a lack of confidence as a result in the markets that's sort of combining to really lead to some tough times," Johnson said.

Bank stocks were among the biggest losers Thursday, with Citigroup plunging 9 percent and Bank of America down 7 percent.

"We're very close to a recession," Johnson said. "The numbers we saw on gross domestic product for the first half of this year were really, really disappointing. We're very close to recession and if things get worse in the third quarter, we could be in a renewed recession or what's being called a 'double-dip.'"

Treasury bond prices surged Thursday, with another drop for interest rates. The 10-year Treasury note – a key rate for consumer loans – is now close to 2 percent.

As a global sell-out continues on the stock markets, Johnson offers this advice to investors: "This is not a time to be a hero, this is not a time to be really brave. This is not a time to pick bottoms. This is a time to respond to market trends, play it a little on the safe side, move a little bit towards defense and hope for a better day."

Copyright 2011 ABC News Radio

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