Forecast calls for recession

An economic recession sounds depressing, but it appears the country may be heading down that path. The Great Depression may be a frequent topic in some U.S. History courses, but we never anticipated this embarrassing matter could arise again.

Politicians and economists seem to agree there is a 50-percent chance this recession is coming our way.

In that case the question is, “Will our dwindling economy sink or swim?”

To ensure that it’s the latter, President Bush is pushing tax rebates, while Ben Bernanke, Federal Reserve Chairman, is proposing to lower interest rates. The goal is to revitalize economic activity.

This may be easier said then done. But Bernanke seems optimistic.

“The Federal Reserve is not currently forecasting a recession,” Bernanke said two weeks ago. “We are forecasting slow growth.”

Bernanke said a rate cut will arrive this month. Several economists have faith that a key rate could fall by as much as one-half of a percentage point.

A cut like this would help to lower the interest rates associated for the numerous types of loans for consumers.

The slide began when the housing market started to go downhill. Foreclosures and loan defaults began to take place, and home construction and real estate markets went from profitable to the contrary. Some people are even saying this could be the worse economic recession that America has faced.

As unfortunate as that may be, it has yet to be seen.

Jay Christie for the Editorial Board.