Recession could hit hard, last long

A recession could last far longer and be more severe than any downturns suffered since the end of World War II, say some economists. “If the United States does not experience a significant and protracted growth slowdown, it should either be considered very lucky or even more ‘special’ than most optimistic theories suggest," wrote economists Carmen Reinhart from the University of Maryland and Kenneth Rogoff from Harvard wrote in a Jan. 14 report. Some signs pointing to lengthier-than-usual recession are the worst housing downturn since the 1970’s, high energy and food prices, a weakening job market, faltering consumer spending and large national debt, said Merrill Lynch economist David Rosenberg in today’s Wall Street Journal. Mr. Rosenberg said during the two most recent recessions — in 2001 and 1991 — the housing market and consumer spending conditions were not as bad as they are today.