House prices are falling, food and energy prices are rising and consumers are gloomier than they’ve been in decades. But the latest data on the U.S. economy shows it still has a feeble pulse.

So which is it? Are we in the early stages of a full-blown recession? Or is this a brief downturn before the economy gets up another head of steam later in the year?

Though the start of a recession can only be seen in the rear-view mirror, many economists now believe the U.S. economy is close to recession or in one. That’s based largely on a string of monthly reports showing the economy has lost about 260,000 jobs so far this year.

“Since the 1950s we’ve never had a period of four months of job losses without that signaling that we were in a recession,” said Jared Bernstein, senior economist of the Economic Policy Institute. “If and when (a recession is confirmed), it will probably be dated based on these payroll numbers as starting sometime around December or January.”

But other economic signals are flashing yellow, not red. The government recently reported the gross domestic product grew slightly in the first quarter, while generally GDP shrinks in a recession. Last week’s employment report for April showed the economy lost only 20,000 jobs, fewer than in previous months.

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How far down is economy headed?

I’m not an economist, I don’t claim to be but I know what the current financial down turn is doing to us and our money…

Just like all Americans, we’re paying more for food and gas, as well as other items from retailers, and like many Americans, we’re on a fixed income, I am retired and unless we get an across the board increase in benefits, my check is fixed every month, I can’t work a few more hours of overtime to make up the difference in our disposable income…

I do have some investments, and they were growing, and doing quite well until 2007, we lost about $10K on our annuity, and that’s a big hit for someone that isn’t rich, it affects our overall lifestyle, as I am sure my readers are well aware, I know that most of my readers are hard working people too, and many are retirees and in the same boat as we are…

I don’t know what the solution is, my investment guy doesn’t know either, he thinks it’s a hic-up, at least he hopes it is, he has money tied up in ALL the same investments that we do…

The sad part is, none of these interest rate cuts the Fed has initiated have made any real difference so far, other than to affect the earnings of those that live off of their interest, and when it comes to a time when you have to start tapping into your principle, well, it may not be a recession, but it’s pretty close…

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