Senators missing the big picture

Senators discussing the impact of a potential US recession may be missing the bigger picture as they  refer to the impending or potentially current recession as “small” and “short”.  Yet judging by a recent Duke University survey of CFOs, the situation may be slightly more bleak.

  • 54% of CFOs say the US economy is now in recession
    • Another 24% say more than 50% chance of recession in 2008
    • 87% say no recovery until 2009

John R. Graham, director of the survey and a finance professor at Duke’s Fuqua School of Business suggested:

“Today, not only do the CFOs say we are already in recession, they predict a prolonged economic downturn. The news from CFOs is pretty grim.”

Duke professor Campbell R. Harvey noted:

“the last two recessions lasted only eight months. In contrast, 90 percent of the CFOs do not believe the economy will turn the corner in 2008. Indeed, many of them believe it will be late 2009 before a recovery takes hold.
This could be the longest slowdown since the double dip recession of 1979-81.”

Hmm…   small and short?  Perhaps not.  So when the Senators look at 2001 or 1990 as benchmarks for Bermudian impact, perhaps they aren’t looking back far enough.


Duke University Survey via The Big Picture

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3 thoughts on “Senators missing the big picture

  1. it’s a perfect storm:
    oil peak,credit market crash,financing will dry up for proposed hotel and construction boom.
    The crime wave,drug epidemic will implode, as will the economy,”managed” by an corrupt, arrogant gangster gov’t
    Question: what do the latest crop of PLP buffoons have in common with South African leaders?
    Answer:’ corrupt, arrogant,’ out of touch with the people they govern
    JOHANNESBURG — One of the most venerated people in South Africa launched a blistering attack on the country’s current leaders yesterday, calling them corrupt, arrogant and deeply estranged from those they govern.

  2. Read today – that is what you should all be worried about Denis, not a US recession.
    If you want to know the root cause of all problems in Bermuda, maybe your “government” will allow some 50,000 hand mirrors to be shipped into the country – with the appropriate onerous tax levied of course – and after they sit on the docks for 18 months and finally get into the hands of non-expat Bermudians, you can all hold them at arms length, with the shiny side facing you, and the mystery of who is to blame for the problems in Bermuda will be solved!

  3. Gladtobehome,
    I have written many a time about it but the problem is I’m only preaching to the choir.
    I’ve been watching for years the quiet exodus of jobs from Bermuda but my government isn’t interested in listening. I hear many rumors of people having increasing trouble with work permits and yet they’re still rushing to let more companies in. We’re not focused on running this island like a business and we’re hurting the customers we already have.
    Yet, what honestly can you do? I’m not rich, I’m not someone of great influence and in the bigger picture, I’m worried about losing what I’ve worked very hard to achieve. Perhaps one day if I’m ever wealthy I’ll be able to get more involved in Bermuda politics. Today I remain focused on getting food on the table, saving what I can, getting through my useless conscripted requirements and improving my career so that hopefully one day I’ll be secure enough to be able to get involved on a deeper level.

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