The current recession, which started in December 2007, has now lasted for 14 months, thus far making it the third longest recession in post-war history. For now, at least, it clocks in behind the recessions of 1973-75 and 1981-82, both of which lasted for 16 months. But AIER’s statistical indicators of business-cycle conditions continue to point to continuing contraction.

This is not the first time the state of California has had trouble paying its bills. Back in 1992, when California was hit hard by a recession and by major defense cuts, it ran into similar fiscal problems. That year, a payment from the state to AIER for an Annual Sustaining Membership “bounced.” Below is the full report from the AIER archives. 

President Barack Obama and members of Congress are promising a lot more government regulatory oversight of the banking industry as part of their continuing bailout of the financial system. But many of those in the financial markets who face these new regulations are also campaign contributors who helped put these politicians in office.

President Obama is hosting a “fiscal responsibility summit” on February 23 that has the goal of reining in the projected growth in government spending in the years and decades ahead. Any such reform, however, will require a dramatic change in the role of government in American society.

The recession we are facing might be a deep one. But beyond its touted potential for severity, this downturn is exhibiting characteristics that thus far are differentiating it from those in the past.

Last week we noted that Ed McMahon and MC Hammer were featured in a Super Bowl ad for Cash4Gold, a Florida company. As Ed and MC demonstrated in the 30-second, $3 million spot (view this advertisement), all you have to do is send the company some gold jewelry, and a couple of weeks later (after deciding its “value”) they will send you a check in the amount of their offer. You can accept the offer by cashing the check. Or you can reject it, and the jewelry will be returned to you.