Economy shrinks most in 25 years; Unemployment continues climb

[Amerigo Vespucci]

Source: The Raw Story

AP BREAKING /// The economy shrank at a 6.3 percent pace at the end of 2008, the worst showing in a quarter-century, and probably isn't doing much better now.

"The Commerce Department on Thursday reported that the economy was sinking a bit faster than the 6.2 percent annualized drop for the October-December quarter estimated a month ago.

"And the pain has persisted in the current quarter. New claims for unemployment benefits last week rose to a seasonally adjusted 652,000 from the previous week's revised figure of 644,000, the Labor Department said Thursday. The total number of people claiming benefits jumped to 5.56 million, higher than economists' projections of 5.48 million, and a ninth straight record-high.

"The figures indicate the labor market remains weak even as some other economic indicators come in better than expected....

Read more: http://rawstory.com/news/2008/Economy_shrinks_most_in_25_years_0326.html

[David__77]

1. It was bound to happen.

All that "growth" over the last few years was based in part on an unsustainable credit bubble. Now the air's being let out.

[BelgianMadCow]

2. ummm - hey but what about the chief economist of KBC (one of our large banks)?

he said recession will be over starting Q2.

:crazy:

Short term traders are making a killing I guess, but everyone else is being sucker rallied.

And as Krugman says, the stock market is hardly a valid indicator of the state of the economy.

I don't but for a minute all the good news following "we're making a profit jan-feb by Citi CEO. Utter bullshit. I can turn a GIANT profit if I get 100 billion first.