Recession in 2008?

Recession May Already be Here

The question for many economists is not if
the U.S. economy will fall into a recession. It's whether it already has....

"Friday's employment report strongly suggests that an official recession
has arrived," wrote David Rosenberg, North American economist for Merrill, in a
note this week entitled "Recession a reality."...

The traditional sign
of a recession is two or more quarters when economic activity declines rather
than grows. That hasn't happened - the final reading of growth in the third
quarter came in at a healthy 4.9 percent....

Goldman's senior U.S.
economist Jan Hatzius is one of those saying a 2008 recession is likely, with
roughly a two-in-three chance. Hatzius is worried about the three-month average
for unemployment, which has jumped more than one-third of a percentage point
from its low....

Other economists point out it's almost irrelevant as to whether the economy
fell into a recession in December, or does so a few months from now.

Bernard Baumohl, executive director of the Economic Outlook Group, said that
even if the economy avoids a recession, it will do so with very slow growth in
2008. He said it's almost immaterial from that perspective if there is a
recession or not.

read the CNN story

Very pessimistic. While the economy has major problems a recession can be avoided this year. Also, could this be media bias? When economy is "bad" the incumbent party tends to lose.