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The New Recession

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  • Description

    FBN's Liz MacDonald on economist coming around to the idea that the economy is in a recession.

  • Duration 2:36
  • Date

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Sensitive another big story here in the economy there are more economists are coming around to the idea that the US economy.

He's not heading into -- already in recession.

There -- reports making the rounds on Wall Street trading desk indicating just that.

Here's part of the problem.

Companies are already Poland back UTX.

Eaton corporation you name it they're not hiring they're not spending was was -- think about all this she is here with our.

Bottom -- that's -- digging a tunnel you know what these guys -- are also looking at is that the earnings beat and the S&P 500 to 38%.

Beat their revenues or their sales estimates are also seeing -- earnings are down year to a year and we're also seeing for example 50% of the 290 and OECD.

Countries already in recession.

Saint Louis fed big debate about that they're putting at a preliminary warning that the US economy is heading into recession.

But in what you're talking about just now is -- companies are pulling back and we're certainly seeing that look S&P is warning about dividend.

-- -- what we're seeing is when you see US companies cutting their dividends the number of those companies rising look at the recession indicator right there you're gonna see that the US economy could be entering a recession.

As more companies cut their dividends and that includes companies like a -- power -- diva Best -- All sorts of companies are doing that and so the recession risk is rising according to first trust advisors.

And that's a real debate -- -- and I were -- one quarter of contraction mean in the fourth quarter.

You won't question about that which is that we keep saying or I ask you guess everything that.

If the fiscal -- doesn't get solved and we run the risk have had to get the recession but we're essentially telling us is this is.

The matter really what the fiscal -- we we could be already in one now yeah that's right so even if we solve that.

We're in a recession in the United States and and that's what.

And -- of the problem is you won't hear from that Barbara terrorists and it -- -- of economic research.

They ticket and now average about a year about eleven months to call a US recession -- but already don't never in the Economic Cycle Research Institute got really slammed for saying we are recession Gary shilling -- various areas that were recession.

-- -- -- -- that talk on Wall Street is picking up because they're watching the data points and also Charlie Brady -- senior letter saying putting out touring 27.

Companies in the S&P 500 -- -- correction mode right now.

Including apple Google and Microsoft -- and but the big thing is when you see that number of companies cutting back their dividends that means they're hoarding capital and not paying an added dividends -- reason.

And there are little scared I think right now you can see one quarter negative.

I'm meeting in recession mode of power and not spend then yeah that's right they can come back on dividends -- thank you so much less sure now.

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