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The Sky Really Is Falling--The Economy Is In Recession.

A key measure of the US economy, the ISM Services Index, just plummeted this morning to a level not seen since Oct. 2001. Anything under 50 indicates

A key measure of the US economy, the ISM Services Index, just plummeted this morning to a level not seen since Oct. 2001. Anything under 50 indicates “recession” and the ISM index fell to 41.9 for January from 54.4 in December. That’s a huge drop.

Virtually every CEO in the US and the smart ones in Asia and Europe will be calling meetings today to discuss cutting costs. I know that most CEOs in India and China still believe they will dodge the US recession (they told me so in Davos) but they are probably. However much consumers in India and China continue to buy stuff, the downward drag of the biggest consuming nation in history—America—will inevitably pull India and China downward into lower economic growth.