Economic forecast: 'There could be blood'

The latest Anderson Forecast, a quarterly forecast released by University of California, Los Angeles, economists, offers some cautious optimism that the train wreck of the housing and credit markets will not completely derail the U.S. economy.

But it certainly does not paint a pretty picture, and the forecasters conclude that it may not take much to nudge the economy into recession (some folks believe we are already in one) and could take awhile to climb out of this sinkhole, whatever you choose to call it.

Just as there is debate over the use and meaning of the "housing bubble" term, there is some debate over what a recession is and what it is not (see Inman News).

"Although we are officially not calling for a recession, it will not take much to put the U.S. economy into recession," stated David Shulman, a senior economist for the UCLA Anderson Forecast who focused on the credit crunch in his report. "Indeed, if history and global experience is any guide, the hangover from the mid-decade credit boom could last for quite some time. And to paraphrase a recent movie, there could be blood."

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