Recession?

It remains to be seen exactly what 2008 holds in store for us, but rumours/fears/speculation that a recession waiting in the wings seem to be gathering credibility. I woke up to news that Asian markets had taken a serious fall over the (North American) night.

This is a top story for a number of news organizations such as the BBC. The most disappointing part for me, and apparently a number of financial analysts, is that all that Dubya can do is march out the tired line of “tax cuts to stimulate the economy”. I have this vague recollection that cutting taxes for the wealthy and businesses while spending billions on wars halfway around the world was more or less the recipe that got the US economy to where it is right now. Not good news, but it seem like bad news is in the air. Milton Friedman must be rubbing his hands in anticipation.