Economic Outlook Turning Murkier
Friday November 21, 2008 17:33:00 EST

(RTTNews) - The steep sell-off witnessed in the equity markets this week stands testimony to the kind of pessimism entrenched in the minds of traders over a potential recovery. Economic reports released during the week lent credence to the thinking that the downturn will turn out to be much more severe than anticipated originally. The sharp pullback in the price of oil also speaks volumes about the muted outlook. From an all time closing high of $147.27 a barrel reached on July 11th, oil has retreated about 66%, as traders unwound positions on their belief that the demand for black gold would wane along with the stalling growth globally.

A long and deep recession would mean more job cuts and a further deterioration in consumer sentiment, which is likely to pressure the a (continued...)