An earnings recession is now expected after the forecast after fourth-quarter projections send expectations from a gain of more than 5% to a decline. What that means, is that the holiday season and consumer spending is no longer expected to pull corporate earnings out of a recession that has lasted the entire year.

Economists have often said that the only thing propping up this precarious economy is the American consumer and their willingness to take on more debt to purchase things. But that looks to be coming to an end, as earnings in the S&P 500 index are now projected to decline 1.51% in the fourth quarter from the year before, according to a FactSet computation of analysts’ average forecasts for individual companies.



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