Sunday, December 23, 2007

Recession Expectations Up

Not a big surprise to many, the number of Americans expecting a recession rose to 43.4% from 40% one month earlier. Although it still appears that over 50% of people are not even paying attention, based on the poll results.

This touches on an interesting CNBC debate the other day. One commentator held the view the media is responsible for the recession because their constant discussion of the “R” word has undermined confidence. He further stated that the talking heads should be banned by the news outlets from discussing the downside of the economy to stop further erosion.

So much for basic American principles and telling people the truth, just wave the magic wand and the recession will magically disappear if the media does not mention it. All the actual underlying causes such as the credit crisis, falling dollar, trade imbalance, reckless consumer spending, bubbled real estate market, and other negative factors… naturally have nothing to do with an impending recession.

Growing number of Americans expect recession: poll