It's Almost Christmas!

Here is your Bush Boom good news for the day. Try and imagine how bad it must really be if they’re actually talking about it:

Dec. 3 (Bloomberg) — U.S. corporate profits are in a recession, and the entire economy may not be far behind.

Slower sales and higher energy and labor costs are forcing companies from Bear Stearns Cos. to Pitney Bowes Inc. to reduce spending and hiring. Their efforts to keep earnings from eroding even further raise the risk that the economy, already weakened by the steepest housing slide since 1991, may shrink sometime next year.

“The earnings recession has already arrived,” says David Rosenberg, North America economist for Merrill Lynch & Co. in New York. “We are going to see an economic recession in ‘08.”

Corporate profits, as measured by the Commerce Department, fell at an annual rate of $19.3 billion in the third quarter from the second, as domestic earnings dropped by $41.2 billion. The drag from sagging U.S. sales and huge writedowns offset robust earnings abroad, fueled by the weak U.S dollar. The fourth quarter may be an even bigger bust.

Normally we are getting the "don't worry be happy" shtick this time of year in the hopes that we'll run up the credit cards another notch or two on "dumpster food" from China". I've got a bad feeling.