The Worst Recession In 25 Years?

On September 18 the Fed cut its target for the fed funds rate by 50 basis points (0.5 percentage points), from 5.25% to 4.75%. The move surprised many analysts who had been expecting a more modest cut of 25 basis points. For those versed in the Austrian theory of the business cycle, as developed by Ludwig von Mises, the aggressive Fed “stimulus” is ominous indeed. Not only will it pave the way for much higher price inflation than Americans have seen in decades, but it will also exacerbate what could be the worst recession in twenty-five years.

This bit of news was from late last year, which (back then) predicted a possible worst recession in 25 years scenario.

Since then, millions of Americans have lost their homes through foreclosures, we’ve seen gas prices climb to unimaginable heights, and inflation and higher prices on everything from food and entertainment to retail goods have taken its toll on the average consumer.

I was going to buy some arranged flowers for the home when I noticed that the price was twice as much compared to last years prices! Of course, gas? I don’t even wanna go their right now, it’s too depressing.

I’m no expert and I confess to not understanding what all the experts say, but everything sure as heck points to a Recession in 2008. And you can feel it in the air… everyone is bracing for it.

My wife is optimistic however, and believes everything will turn around towards the end of the year. And, was that my imagination? The gas prices fell by 10 cents or so? Hmm…

I intend to keep my chin up, and to roll with the punches…