I reported on this in January and now we have official confirmation.

Good times…

The evidence of a recession has been widespread for months: slower production, stagnant wages and hundreds of thousands of lost jobs.

But the nonpartisan National Bureau of Economic Research, charged with making the call for the history books, waited until now to make it official — and the announcement came on a day when the American stock market fell nearly 9 percent in a single session.

The sharp declines on Wall Street — the Dow Jones industrial average dropped 679.95 points or 7.7 percent — appeared more about profit-taking than the economy. Investors have long assumed that the country was in recession, and analysts said that after last week’s gains, including the biggest five-day rally in decades, a sell-off was to be expected.

So what’s the biggest threat right now for America’s economy?

Personally, with the news of a possible $2 trillion pull back on credit by the banks, I think we’re look at the potential for a serious deflation. And if that happens, watch out, because it’ll really kill business investment.

This is why one of the first things you’ll see Obama and his economic team do is propose a MASSIVE stimulus package to start rebuilding our infrastructure AND urging the Fed to print more money so prices don’t drop too drastically. The former is a long term strategy and the latter is for the short term, but both could help create more market stability.

What do you think will happen?

Business Recession Started In December 2007