“It’s Going to Get a Lot Worse”: ECRI’s Achuthan Says New Recession Unavoidable

[scandal 951]

http://finance.yahoo.com/blogs/daily-ticker/going-lot-worse-ecri-achuthan-says-recession-unavoidable-141929160.html

“It’s Going to Get a Lot Worse”: ECRI’s Achuthan Says New Recession Unavoidable

By Aaron Task | Daily Ticker

Weakness in leading economic indicators has become so pervasive the Economic Cycle Research Institute now predicts a new recession is unavoidable.

"The vicious cycle is starting where lower sales, lower production, lower employment and lower income [leads] back to lower sales," co-founder Lakshman Achuthan declares in the accompanying video.

Whereas Achuthan said the jury is still out in late August, the weakness in leading economic indicators — and ECRI uses a dozen for the U.S. alone, he notes — has become a "contagion" that is spreading like "wildfire."

Although the recovery has been "subpar" by nearly every measure, Achuthan refutes the idea the economy never got out of recession in the first place. "Just because it looks and feels a certain way doesn't mean it's a recession," he says. "You haven't seen anything yet. It's going to get a lot worse."

It's too soon to predict just how bad it's going to get, but he expects another spike in unemployment and further expansion of the federal government's $1 trillion deficit. This forecast has huge ramifications for the 2012 election and the already struggling U.S. consumer and Achuthan says a "mild" recession is the best-case scenario.

By now you may be wondering what separates ECRI's recession call from the myriad other recession calls out there. First, ECRI's primary raison d'etre is predicting recession and recovery calls. Second, and more importantly, The Economist reports ECRI has never issued a "false alarm" on a recession call, meaning many of the Chicken Littles currently declaring "the sky is falling" might actually be right this time around.

[MyLittlePony 340]

Obama was supposed to make it go away?

[Gary and Alla 3,694]

Obama will save us. I know he will. He said he would.

[dalegg 143]

Fricken Bush.

[Obama 2012 1,714]

HOPE & CHANGE 2: Because We Didn't ** You Over Enough The First Time!

[lostinblue 1,989]

You have no business leadership in Washington. Only sweet heart solar deals that produce nothing but more borrowing. We have an anti business president and then we wonder WHY business will not produce jobs. If jobs are our number one problem then maybe we need someone who understands how to produce jobs Herman Cain.

Herman graduated from Morehouse College with a degree in mathematics in 1967. His brother, Thurman, would go on to graduate from Morris Brown College.

Inspired by the work ethic and character of his parents, Herman continued his education by earning his Masters degree in computer science from Purdue University while working full-time developing fire control systems for ships and fighter planes for the Department of the Navy. Though Herman enjoyed using his talents as a civilian employee for the Navy, he gravitated towards the culture of business.

Herman returned to his home of Atlanta to begin working as a computer systems analyst for the Coca-Cola Company. After considerable success at Coca-Cola, he moved to the Pillsbury Company. Within a short period of time, Herman rose to position of Vice President. Although the comforts of a corner office on the 31st floor of a majestic corporate building seemed satisfying, Herman knew that he needed a challenge.

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Energized by overcoming the many obstacles of his job at Burger King, Herman took on the biggest challenge of his career. He accepted the call to become the President and CEO of Godfathers Pizza, a company that was teetering on the edge of bankruptcy. In just 14 months, Herman returned Godfathers to profitability and he led his management team to a buyout of the company.

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Herman was skeptical. Quite honestly Mr. President, your calculations are incorrect, he said. In the competitive marketplace, it simply doesnt work that way. His words echoed across America, and Newsweek named Herman Cain the primary saboteur of Hillarycare.

Through these and other appearances on behalf of the National Restaurant Association, Herman began working with business leaders across all sectors of the American economy. This led to his acceptance of a position on the Board of Directors of the Federal Reserve Bank of Kansas City, and he was subsequently elected their chairman. In this role, he analyzed economic conditions in the region and notified the Federal Reserve of how their policies should respond.

Edited October 1, 2011 by lostinblue