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Letter to the editor

Could it get any worse?

By Times Wires
Published January 18, 2008

With sour economic news being unleashed on Americans almost daily, Federal Reserve Chairman Ben Bernanke, left, joined in calls for an economic stimulus package aimed at quickly getting cash into the hands of people, especially those with low and moderate incomes, in an effort to avert a recession. "Putting money into the hands of households and firms that would spend it in the near term" is a priority, Bernanke told the House Budget Committee on Thursday. Bernanke declined to endorse any particular approach, but he did say he preferred one that would act quickly and not have a long-term, adverse impact on the deficit. The rush to swing behind a stimulus plan underscored the political imperative of responding to growing concern about the possibility of recession. The fragile state of the economy has gripped Wall Street and Main Street and is a rising concern among voters. President Bush told congressional leaders privately Thursday that he favors personal income tax rebates and tax breaks for businesses. 

WALL STREET

Market free fall persists, with Dow dropping 306

Wall Street tumbled again Thursday on the heels of a Federal Reserve report showing a sharp decline in manufacturing activity. The Dow Jones Industrial Average closed down 306.95, or 2.46 percent, at 12,159.21, and is now off 8.33 percent for the year. In just 12 trading days in 2008, the index has given back all of its 2007 gains. The S&P 500 index lost 39.95, or 2.91 percent, closing at 1,333.25, off 9.2 percent for 2008, while the Nasdaq dropped 47.69, or 1.99 percent, to 2,346.90, giving it a 2008 deficit of 11.51 percent.

CONSTRUCTION

New-home building decline worst since '80

The Commerce Department reported Thursday that construction was started on 1.353-million new homes and apartments last year, down 24.8 percentfrom 2006. It was the second biggest annual decline on record, exceeded by 1980's 26 percent plunge. Economists said the current housing slump has surpassed the 1990 downturn and will likely rival or surpass the housing downturn in the late 1970s and early 1980s, when the Federal Reserve was pushing interest rates to their highest levels since the Civil War.

FLA. EMPLOYEE CONFIDENCE

Worker index reveals mounting apprehension

The monthly Florida Employee Confidence Index coming out today has sunk to its lowest level since it began in July 2004. The index, assembled by Spherion Corp., indicated:

-Nearly two-thirds of workers (65 percent) believe the economy is getting weaker, up 18 percentage points from November.

-Nearly half (46 percent) believe there are fewer jobs available, up 12 percentage points.

-More than one-third (39 percent) say they are likely to look for a new job in the next 12 months, up 8 percentage points.

[Last modified January 18, 2008, 00:26:28]