Merrill Economist Forecasts Worst Recession in 25 Years

David Rosenberg, chief economist for Merrill Lynch, has issued a stark warning: the U.S. is heading for the worst consumer-driven recession since 1980.

What’s more, said Rosenberg, neither aggressive interest rate cuts by the Federal Reserve nor a federal fiscal stimulus package will stop the momentum.

“The recession in housing has spilled over to the rest of the economy, in our view. We now expect an outright contraction in economic activity in the first three quarters of 2008. This downturn should be led by consumer spending,â€