Monday, December 01, 2008

It's Official: The U.S. Economy is in Recession

U.S. recession began in December 2007, NBER says

Here's the full text from this morning's WSJ Market Watch article:
WASHINGTON (MarketWatch) -- The U.S. economy entered a recession in December 2007, a committee of economists at the private National Bureau of Economic Research said Monday. The economy reached a peak in December and has been declining since, according to the business cycle dating committee of the NBER. The committee does not judge a recession as two consecutive quarterly declines in gross domestic product; rather, it looks at four key monthly economic indicators, including employment, industrial output and sales. Employment peaked in December.
Our first reaction? Tell us something we didn't already know. And yes, it's obviously been affecting the local economy for some time now. All that's necessary to arrive at this conclusion is to look through the rear-view mirror:
Adam Aircraft Abortion
Ogden Midtown Hotel/Waterpark Mis-step
Ben Lomond Bankruptcy
Leshem River Project Washout
Windsor Hotel Wilt
And not to be overlooked is this:
The "Junction" Taxpayer Money Pit
So now that we have this information, how will the Emerald City administration respond? Will Boss Godfrey pare down his big-spending plans, now we have proof that we've been swimming against the national economic current for the last year or so? Will our city government adopt a new philosophy of financial prudence, and "sit out" the grand planning and scheming, at least until the economy eventually begins to recover? Will our city council finally decide to accumulate a rainy day fund, just in case the recession is especially deep and protracted? Will knuckleheaded projects like the Ice Tower, the Velodrome and the Golf Course Makeover find their way to the Emerald City back-burner?

So many questions... so few answers.

Comments, anyone?


Bertram C. said...

I'm truly amazed that nobody has posted a comment on this.

Here we are, poised on the brink of possibly the worst economic downturn within the lives of but a few who post here, and this story is greeted with a collective yawn.

danny said...

I have a comment.

Brilliant, Rudi.

You are the crown jewel of Ogden.

sterica said...

Help is on it's way...2010!

Rafiki said...

I personally have spent more money than I ever have in the past 3 weeks.

What will come will come and the worse that could happen is we could all die.

Has to happen sooner or later.

Everybody go out and buy some beer or that industry will go belly up and then what???

danny said...

Our President has weighed in. These are actual quotes from him, from today.

"I think I was unprepared for war. In other words, I didn't campaign and say, 'Please vote for me, I'll be able to handle an attack.' In other words, I didn't anticipate war. Presidents - one of the things about the modern presidency is that the unexpected will happen."

"I think most people voted for Barack Obama because they decided they wanted him to be in their living room for the next four years explaining policy. In other words, they made a conscious choice to put him in as president."

"This economy will recover. And when it recovers, many of the assets backed by the government now will be redeemed, and we will - could conceivably - make money off of some of the holdings . . . I can't guarantee that we'll get all our money back, but it's conceivable we could."


Jason said...

According to Keynes, the root cause of an economic downturns is an insufficient aggregate demand. When the total demand for goods and services declines, businesses throughout the economy see their sales fall off. Lower sales induce firms to cut back production and to lay off workers. Rising unemployment and declining profits further depress demand, leading to a feedback loop with a very unhappy ending.

disgusted said...

wish our city council would take the bull by the horns.
i.e. shut down godfreys business development give away activities until this economy improves.
otherwise the city will run up huge budget deficits that will only be cured by cutting back services to the residents or by raising taxes.
if either of these actions happen i assure you the resident will remove the whole lot of city council members at the next election. if city council members want to remain in office they better start showing some intestinal fortitude and slow the flow.

Mberenis said...
This comment has been removed by a blog administrator.
what it will cost us said...

The city has already run up huge debts that the taxpayers will be responable for. City services have been cut, spring and fall cleanup, and more will be forthcoming under the guise we need to pay for the golf course..

On another note a good article in the Tribune showing Heidi Harwood owner of Brewskis, City Club and the rumored tunnels in Ogden under 25th street. This shows Ogden enjoyed adult entertainment rather than the current kiddyland that the mayor aspires too. The article states Utah needed the tax revenue and to look more normal to the rest of the US. Ogden could use the tax revenue instead of forcing the bars off of 25th street. Good highlight of the business on 25th.

Prohibition: 75 years ago, Utah's vote repealed 'The Noble Experiment'

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