Are we headed for a recession?

America is at the tail-end of a failed administration, and while the politicians keep telling us that we need to bailout the financial sector or else... aren't we headed for the dreaded "or else" whether we pass the bailout or not?

Today Senator Barack Obama urged the U.S. Congress to pass the bailout plan rejected by the House of Representatives Monday afternoon. Without it, Obama said "...thousands of businesses could close. Millions of jobs could be lost. A long and painful recession could follow."

Sen. John McCain and President Bush reiterated these same sentiments. Trouble is, I just don't think they're being straight with us.

Housing prices have collapsed. joblessness is up, 401K plans hemorraging and retail sales down.

Now I know politicians and Wall Street don't like to utter the "R-word," but facts are facts.

More sensible heads at Bloomberg and Forbes say that any effort to rescue America's financial system will not avert a recession. The world's largest economy is in for very uncertain times, economists say. They just don't know how bad it will get.

Should we trust what the politicians are saying or the economists?

You tell me.