Year: 2008

FT.com / Comment & analysis / Letters – Premature to say US is in recession:

Premature to say US is in recession
Published: March 17 2008 02:00 | Last updated: March 17 2008 02:00
From Mr Joe Carl White.

Sir, In the first sentence of your report “Dollar plunges to record low” (March 14), you say that “retail sales figures confirmed that the US is in recession”.

Hardly. The sales figures cited show a decline for February, true; but a recession is two or more quarters of decline. Since preliminary figures for fourth quarter 2007 show an increase, it is quite premature to state that we are in a recession at this time.

Joe Carl White,
Houston, TX 77057, US

Free Association: Privatized Profits, Socialized Losses:

The free market is a profit and loss system void of privilege. When businesses fail, they are supposed to actually fail, not turn to the taxpayers.

FT.com / World / US & Canada – Dollar plunges to record low:

The dollar plummeted to record lows and the price of gold touched $1,000 on Thursday as retail sales figures confirmed that the US is in recession and concern intensified about spreading distress in the hedge fund sector.

The retail sales figures to which the piece referred showed a 0.6 percent decline for the month of February; a recession is two or more quarters of decline back to back, and since last quarter most likely saw an increase, it is much too early to declare we are in a recession, especially when many economists believe we will avoid one.