By Mia Pierson
Elected U.S President, Barack Obama will take office at a time of economy struggling. Analysts are warning of a potential long recession.
Below is a resume of the recent economic data showed in the U.S:
* U.S. gross domestic product shrank at a 0.3 percent annual rate in the third quarter, the biggest contraction in seven years.
* U.S. employers have cut a total 760,000 jobs this year and the jobless rate hit a five-year high of 6.1 percent in September. A report on Wednesday showed private-sector employers cut 157,000 jobs in October, the deepest in six years, and a more-comprehensive government report on Friday is expected to show an even larger decline across all employers. Many analysts forecast the unemployment rate will rise by a percentage point or more over the course of the next year.
* U.S. stock markets crashed in October. The Standard & Poor’s 500 Index had its worst month since the October 1987 stock mark collapse, while the Dow Jones industrial average logged its biggest monthly drop in a decade.
* Consumer spending, which fuels two-thirds of U.S. economic activity, fell by 0.3 percent in September, the first drop in two years. U.S. consumer confidence in October suffered its steepest monthly drop since 1952.
* U.S. industrial production tumbled by 2.8 percent in September, the biggest drop since December 1974. A report on Monday showed factory activity fell last month to its lowest level in 26 years. U.S. auto sales plunged 32 percent in October to a 25-year low.
* About 85 percent of domestic banks tightened lending standards on commercial and industrial loans to large and middle-market firms over the past quarter, showing the credit crunch that set in a year ago is worsening.
* The Federal Reserve has cut benchmark interest rates to 1 percent from 5.25 percent in the last 13 months, and has pumped hundreds of billions of dollars into financial markets to try to get credit flowing again, with only limited success.
This recession continued, the hope for Americans is the new president can have new ideas to go out of this bad days. Because of Obama´s election the crisis is not going out, let´s face it, we need more than that.
The recession is still on, and yes although Americans are mostly happy with Obama´s future presidency, he´s not coming with a magic wand under his arm. Stabilizing US economy requires a lot of work, and careful plan and development of strategies. It is huge what the new president is about to face
Of course the economic crisis isn’t over, a new president has never been the resolution to a deep problem, however Obama is aware of the challenge he’s facing, he’s no super hero and he probably does not have the answer to what the steps to resolve this situation will be, but he must be intelligent enough to know how to surround himself with experts in the subject.
as always, watch the moves, keep the eyes and ears open..time will tell