Here we go again. We need stability and a few positive surprises before this ship is righted and this downgrade - which will surely be downgraded again - is not helping.
The Federal Reserve on Wednesday sharply downgraded its projections for the country's economic performance this year, predicting the economy will actually shrink and unemployment will rise higher.Tell me again why the Democrats are allowing the GOP to give lectures on the economy? This is the GOP's fault and they still can't accept any responsibility let alone a decent idea on how to get us out of this recession
Under the new projections, the unemployment rate will rise to between 8.5 and 8.8 percent this year. The old forecasts, issued in mid-November, predicted the jobless rate would rise to between 7.1 and 7.6 percent.
The Fed also believes the economy will contract this year between 0.5 and 1.3 percent. The old forecast said the economy could shrink by 0.2 percent or expand by 1.1 percent.
The bleaker outlook represents the growing toll of the worst housing, credit and financial crises since the 1930s. All of those negative forces have plunged the nation into a recession, now in its second year.
NOTE FROM JOHN: Again, why do the Democrats refuse to lay the blame squarely on George Bush and 8 years of Republican rule? Had the Democrats done this to the economy, the Republicans would make sure that we paid the political price for the next 100 year. There is no way to stop the Republicans from destroying the economy further, and again, until we force them to take the blame.
