The ‘R’ word: recession. It’s pretty much inescapable now. The Wall Street Journal was among all the major media to let us know:
Jobs Data Suggest U.S. Is in Recession
Largest Payroll Fall In Five Years Spurs New Stimulus Talk
By SUDEEP REDDY March 8, 2008; Page A1
U.S. employers shed 63,000 jobs last month, the most in five years, reinforcing a widening view that the U.S. is falling into recession. Among economists and politicians, the debate is shifting to how deep the downturn will be and how to ease it.
The jobs dropoff came after the nation lost 22,000 jobs in January, the Labor Department said. In the past, such back-to-back monthly employment declines have occurred only around recessions.
Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 points Friday to close at 11,893.69. The index lost 3% for the full week.
By far the most distressing feature of this distressing development is that the dimension of the job loss was such a surprise, especially to the guys who are paid good coin to anticipate such news, economists.