US recession is already here, warns Merrill

[Spectre]

US recession is already here, warns Merrill

By James Quinn, Wall Street Correspondent
Last Updated: 12:05am GMT 08/01/2008


The US has entered its first full-blown economic recession in 16 years, according to investment bank Merrill Lynch.

Merrill, itself one of Wall Street's biggest casualties of the sub-prime crisis, is the first major bank to declare that a recession in the world's biggest economy is now underway.

   
US Treasury Secretary Hank Paulson has admitted that the US economy faces severe challenges
David Rosenberg, the bank's chief North American economist, argues that a weakening employment picture and declining retail sales signal the economy has tipped into its first month of recession.

Mr Rosenberg, who is well-respected on Wall Street, argues: "According to our analysis, this [recession] isn't even a forecast any more but is a present day reality."

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http://www.telegraph.co.uk/money/main.jhtml;jsessionid=YC0LPXOVHOQYTQFIQMFCFF4AVCBQYIV0?xml=/money/2008/01/07/bcnuseco107.xml

[larsonstdoc]

   Bob Chapman said we went into recession in Feb. 2006.  At least Merrill is admitting it now.