Paulson Uses the “R” Word

Well, it’s official.  According to  MSNBC the U.S. economy began the fall into recession back in December of 2007, just about a year ago.  The National Bureau of Economic Research panel, made up of academic economists, finally declared what most private economists, lawmakers, business people and common everyday folks already knew.  At least, I have know this for quite some time and that’s why it boggled my mind why all of a sudden it made the news.  Anyone who has been the least bit attentive is aware that  unemployment has been on the rise and the stock market has been on the decline, major financial institutions are crumbling under the weight of bad debt and, in my mind, the biggest indicators of all: cars aren’t selling and people are using their credit cards less.  Despite the fact that President Bush is not ready to acknowledge that this isn’t a full-blown recession yet, Treasury Secretary, Henry Paulson finally agreed and actually used the “R” word Monday.  This is really an omen that things are bad.

So, now that we know where we stand, the next question is when and how will we recover.  I’m afraid that the answer is going to be more difficult to determine then the question.  An op-ed piece in US News & World Report believes that last year was just the beginning of the halting of our economic gears.  In 2009 we will see a 4% decline in GDP (instead of last year’s 1%), unemployment will continue to worsen, the stock market will continue to falter and credit will tighten.  The only bright spot is that oil prices are also on the decline which means that eventually food prices will come down too. 

What do we need to do to weather this economic storm?  The first thing we can do is accept the fact that this recession isn’t going to turn around any time soon.  It’s globally big and has a life of it’s own.  We didn’t get in this mess over night and we won’t be getting out of it any time soon. Accept this, but try not to worry about it.  The best we can do is take the offensive by living within or below our means.  If you have to, refinance mortgages and consolidate debts.  If you can,  put aside more savings and invest in quality stocks.  If you are currently still working, now might not be a good time to retire.  Be honest and objective about making that decision.  After all, work is just one more day, week or year but retirement is forever.  It is easier to get by if you dwell on all the positives in your life and keep the negatives in their place.  And finally, reach out and help others.  Volunteer, be it donating canned goods for a food drive or working in a soup kitchen or listening to a child read.  Nothing makes you realize how fortunate you are in bad times than helping those who have less.’; //leave this line

//This is the custom advertisement that you can add anywhere you like by placing into your post. Surround it by any HTML you like.
$customad = ‘

‘; //leave this line

?>