Morgan Stanley issues full US recession alert

Morgan Stanley has issued a full recession alert for the US economy, warning of a sharp slowdown in business investment and a “perfect storm” for consumers as the housing slump spreads.

In a report “Recession Coming” released today, the bank’s US team said the credit crunch had started to inflict serious damage on US companies. “Slipping sales and tightening credit are pushing companies into liquidation mode, especially in motor vehicles,” it said.

Avast! Batten down the hatches!