U.S. economy suffers biggest fall in seven years

[GigiBowman]

WRAPUP 4-U.S. economy contracts as consumers retreat
Thu Oct 30, 2008 5:00pm EDT

U.S. economy suffers biggest fall in seven years

* Consumer spending pullback key factor in GDP decline

* Analysts warn contraction to be deep and prolonged (Adds comments by San Francisco Fed president, updates with closing market prices)



By Glenn Somerville

WASHINGTON, Oct 30 (Reuters) - The U.S. economy suffered its sharpest contraction in seven years in the third quarter as consumers cut spending and businesses reduced investment at the onset of what may be a severe and long-lasting recession.

The Commerce Department said on Thursday that U.S. gross domestic product shrank at a 0.3 percent annual rate as the biggest pullback by consumers since 1980 overwhelmed an increase in government spending.

San Francisco Federal Reserve Bank President Janet Yellen called the economy's recent performance "deeply worrisome," and said the downturn was set to worsen.

continued: WRAPUP 4-U.S. economy contracts as consumers retreat | Markets | Bonds News | Reuters

 

[Charles_Main]

inevitable

 

[donttread]

The term "contraction" implies that something wonderful will be born out of this painful process.
But not if we leave it up to these two corrupt, ineffective parties. We need to draw some lines in the sand right now!

 

[Toro]

This is nothing. The next quarter may see a 4% or 5% decline.

 

[Zoomie1980]

WRAPUP 4-U.S. economy contracts as consumers retreat
Thu Oct 30, 2008 5:00pm EDT

U.S. economy suffers biggest fall in seven years

* Consumer spending pullback key factor in GDP decline

* Analysts warn contraction to be deep and prolonged (Adds comments by San Francisco Fed president, updates with closing market prices)



By Glenn Somerville

WASHINGTON, Oct 30 (Reuters) - The U.S. economy suffered its sharpest contraction in seven years in the third quarter as consumers cut spending and businesses reduced investment at the onset of what may be a severe and long-lasting recession.

The Commerce Department said on Thursday that U.S. gross domestic product shrank at a 0.3 percent annual rate as the biggest pullback by consumers since 1980 overwhelmed an increase in government spending.

San Francisco Federal Reserve Bank President Janet Yellen called the economy's recent performance "deeply worrisome," and said the downturn was set to worsen.

continued: WRAPUP 4-U.S. economy contracts as consumers retreat | Markets | Bonds News | Reuters

Biggest fall in seven years? Wow!!!! Let's see....seven years. Oh... that was the last recession! Duh....

The "news" people are a hoot! Good comedy.

 

[Zoomie1980]

This is nothing. The next quarter may see a 4% or 5% decline.

That will get it close the recession of 82-83 and the early 70's.....

Most business reporters have never really lived through or experienced a hard recession. Recessions up through the early 80's were always pretty harsh but usually short lived. Usually 7, 8, 9% contractions in GDP and 10-12% unemployment.

My first mortgage was 14.5%...and that was a good deal VA loan....

My how people forget things....

 

[Care4all]

That will get it close the recession of 82-83 and the early 70's.....

Most business reporters have never really lived through or experienced a hard recession. Recessions up through the early 80's were always pretty harsh but usually short lived. Usually 7, 8, 9% contractions in GDP and 10-12% unemployment.

My first mortgage was 14.5%...and that was a good deal VA loan....

My how people forget things....

my first was 13.5%, early 80's!

People were earning 8% and 9% on their certificate of deposits though....so if you had money going in to that period, you were able to accumulate alot of wealth with compounded interest.