Banks have tightened credit requirements, creating a serious liquidity problem. Consumer spending is down and retail sales have been weak. In fact, this may be the weakest Christmas selling season since 1990. Car sales are down. Home sales have dropped.
Manufacturing is in a steep decline.
Layoffs have begun to climb and job creation is soft. That may come next month, he signaled, a decision that has angered Bush advisers. That's why Bush and Vice President-elect Dick Cheney were sending signals all over the place last week that tax cuts are essential to keep this economy from declining further and, perhaps, slipping dangerously close to a recession next year. Both he and Cheney, who is using the recession word more frequently, are telling congressional leaders that a strong tax cut is needed early to strengthen the economy. Tax cuts are no longer an option, they are a requirement.