BBRED's continuation of a study of Lowcountry recession.
By Phyllis Isley 

Signs of a potential slide into a U.S. recession continue to appear. In the fourth quarter of 2007, productivity slowed and labor costs rose, a double squeeze on business profits. January retail sales were the weakest on record in 40 years, and the economy lost nearly 17,000 jobs. Whether coastal Georgia and the Lowcountry as a region can dodge a national recession depends on how deep and how long such a recession might be. So, what elements may continue to plague the U.S. economy and what factors might amplify or dampen a recession?

Clearly, the housing and financial sectors will remain a huge drag on the U.S. economy through most of 2008. Adjustments needed to clear the excess inventory of homes, including the growing inventory of foreclosures, are subject to the laws of friction. It takes time and money to reallocate resources in what could involve more than one million homes.