Deranged economists see no recession

A quarterly survey of economists by the University of California at Los Angeles says that, while the housing and financial sectors may slump, the economy will probably stay out of a recession. The Anderson Forecast painted a modestly rosy picture of the current situation for consumers and businesses.

"We don't see that happening," said Edward Leamer, director and co-author of the forecast released Tuesday. "This is a tough call, but I will be very surprised if this thing actually precipitates into recession," according to the AP.

The group who participated in the forecast must have been overseas for the last six months. With rising oil prices cutting into consumer spending and housing in sections of the country losing 20% of its value, it is hard to see how spending can do anything but drop this year.

Indications are that lay-offs have already begun in a number of industries. Retail sales are falling as are purchases of consumer goods and autos.

Otherwise, everything is fine.

Douglas A. McIntyre is an editor at 247wallst.com.