• On December 1, 2008, the National Bureau of Economic Research announced that the United States had officially entered a recession beginning in December 2007.The New York Times: It's Official: Recession Started One Year Ago (December 1, 2008) A variety of factors have contributed to this prognosis, including the subprime mortgage crisis, rising unemployment, a general downturn in economic growth, and the precarious state of major financial institutions such as Fannie Mae and AIG.

  Following the Christmas holiday, early reports indicated that U.S. traditional retailers' sales were down up to eight percent over last year. However, the 40% drop in gasoline prices from last year accounted for much of the drop in sales figures. Two top sectors showing declines over the previous year were apparel and electronics, losing up to 21 and 26 percent respectively.AFP: US holiday season retail sales plunge amid recession (December 26, 2008)

• 1. National Bureau of Economic Research (NBER), has designated 33 U.S. recessions since 1854The American: The Great Recession of 2008? (December 21, 2007)
  2. Bureau announced in December 2008 that U.S. entered recession in December 2007
  3. Two consecutive quarters of negative economic growth is often used to qualify a recession
  4. The Federal Reserve has lowered interest rates several times to prevent slipping into a recession
  5. A December 2007 UCLA study said a 2008 recession would be avoidedLATimes: UCLA: No recession coming(March 11, 2008)
  6. The Federal Reserve plans to cut the interest rate to 0.5% by the end of 2009Bloomberg: Obama Is Seen Inheriting Worst U.S. Recession Since Reagan Era (November 8, 2008)
  7. Alan Greenspan estimated the likelihood of a recession at 50 percentThe American: The Great Recession of 2008? (December 21, 2007)
  8. U.S. retailers report holiday sales down eight percentAFP: US holiday season retail sales plunge amid recession (December 26, 2008)

• The Mortgage Bailout Plan

  A mortgage bailout plan was passed by Congress on October 3, 2008, but the economy continued to deteriorate. President-elect Barack Obama has asked that a second stimulus package be developed during the lame duck session of Congress, but it is unclear whether President George W. Bush will agree to this.CNN Money: Call it a recession, already (November 7, 2008)

• Economic Statistics

  • Jobless rate rose to 6.5% in October 2008, the highest since 1994CNN Money: Call it a recession, already (November 7, 2008)
  • 240,000 jobs cut in OctoberBloomberg: Obama Is Seen Inheriting Worst U.S. Recession Since Reagan Era (November 8, 2008)
  • Total of 1.2 million jobs cut in 2008Bloomberg: Obama Is Seen Inheriting Worst U.S. Recession Since Reagan Era (November 8, 2008)
  • The 1.5% gain in unemployment over six months is largest within that timespan since February 1982Bloomberg: Obama Is Seen Inheriting Worst U.S. Recession Since Reagan Era (November 8, 2008)
  • Gross Domestic Product will shrink at a 3.5% annual rate in the 4th quarter of 2008 and at a 2% annual rate in the 1st quarter of 2009Bloomberg: Obama Is Seen Inheriting Worst U.S. Recession Since Reagan Era (November 8, 2008)

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