Check out this cheerful forecast form Societe Generale.
 
The French bank’s cross asset strategist, Albert Edwards, said the U.S. economy is likely to enter a depression. Oh, and look out for a global trade war with China.
 
For retailers reeling from the worst holiday season in four decades, the forecast cannot be welcome.
 
Edwards predicts the S&P 500 is set to fall another 40 percent from recent levels.
 
But there could be another problem looming, he wrote in a research note.

“It is becoming clear that the Chinese economy is imploding and this raises the possibility of regime change. To prevent this, the authorities would likely devalue the yuan. A subsequent trade war could see a rerun of the Great Depression,” he said.
 
There you have it. Happy New Year.
 
Also in the basket:
 
Black Angus Steakhouse parent files for bankruptcy
 
Circuit City still in talks over potential sale
 
Deal-form-hell award to Landry’s (New York Times DealBook)

(Photo: Reuters)

Shoplifting, drug use, depression, anxiety and even violence.

These could rise in frequency in the coming months, according to mental health experts, as the U.S. recession leaves consumers confronting a harsh new economic reality — and the prospect of living within diminished means. 

“People start seeing their economic situation change, and it stimulates a sort of survival panic,” said Gaetano Vaccaro, deputy clinical director of Moonview Sanctuary, which treats patients for emotional and behavioral disorders. 

“When we are in a survival panic, we are prone to really extreme behaviors,” he said.

The recession has come as a rude awakening for a generation of shoppers who grew up on easy access to credit and have never had to limit purchases to simply what they needed or could afford. Instead, buying and consuming have become part of the national culture, with many people using what is in their shopping bags to express their own identity, from the latest gadgets to designer handbags. 

For those who need to abruptly curtail spending it can lead to anxiety or depression as shopping can no longer be used as a stress reliever. It could also lead to a rise in shoplifting or violent behavior as consumers act out, mental health experts said.

Tell us how you are reacting to the recession? Has it forced you to curb your spending? Is that leaving you feeling anxious or depressed?

(Photo: Reuters)