White House aide says parts of US in recession

By JERUSALEM POST STAFF
One of President George W. Bush's top economic advisers said Sunday that parts of the country probably already are experiencing a recession and it could take a few months before the clogged credit system starts working again. Many analysts predict the economy could contract over the final three months of this year and in the first 90 days of 2009. That would meet the classic definition of a recession - two consecutive quarters of economic contraction. Some economic analysts say the sagging economy already is in recession. The White House has been loath to use that word, both because the technical definition has not been met and because it carries such negative weight. Speaking in a broadcast interview Sunday from California, the chairman of the White House Council of Economic Advisers noted that the national unemployment rate stands at 6.1 percent. Ed Lazear said some parts of the country, such as California, have even higher rates of people out of work.