GRIM FORECAST - AT 8:05 A.M. ET:   From The Washington Times:

The U.S. economy will contract this year much more sharply than the Obama administration has forecast, and next year's U.S. unemployment rate will reach double digits, far higher than the White House has predicted, according to a report issued Tuesday by a group representing the world's most advanced economies.

The U.S. recession "has deepened sharply, with output contracting at an alarming pace and the labor market weakening rapidly. Since December 2007, nearly 4.5 million jobs have been lost," the Paris-based Organization for Economic Cooperation and Development said in its report. "The financial system remains fragile and some parts of the banking sector are under considerable stress."

COMMENT: Let's hope this doesn't come to pass, but, if it does, I fear there'll be an even greater economic power grab in Washington.  Many Americans can easily be deceived by some short-term economic news, and especially by a rising stock market.  But we had a rising stock market during the heart of the great Depression, and it had no effect on the real economy. 

I'm especially concerned about the psychological impact of a GM bankruptcy, which now seems to be in the cards.  When that name goes under, watch for one news story after another, with documentaries.

April 1, 2009