Then again, many of these forecasters were probably saying, six months ago, that this would be a mild recession. From The Financial Times:
Economic pain to be ‘worst for 60 years’
By Krishna Guha and Alan Beattie in Washington and Chris Giles in Davos
Published: January 28 2009 19:23 | Last updated: January 28 2009 20:48
The world economy will this year suffer its worst performance for more than 60 years with a serious risk that 50m people will lose their jobs, international organisations warned on Wednesday.
The warnings came as the Federal Reserve expressed fresh concern about deflation, noting that the US economy had “weakened further” since its last policy meeting in December.
The US central bank made no immediate move to purchase Treasury securities–disappointing some in the markets–and signalled that its preference is to expand targeted credit operations instead. The Fed said it would “assess whether expansions of or modifications to lending facilities would serve to further support credit markets”.