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Those odds may seem low, but they’re actually high since double-dip recessionz are rare and the U.S. economy grows 95 percent of the saysthe chamber’s Marty Regalia. He predicts the current economic downturn will endaround September. However, the unemploymenrt rate will remain high through the first half of next year andinvestmentg won’t snap back as quickly as it usually does aftef a recession, Regalia says. however, looms as a potentiaol problem because of thefederal government’xs huge budget deficits and the massive amounrt of dollars pumped into the economy by the Federal he says.
“The economy has got to be runniny on its own by the middle of next Regalia says. Almost everyu major inflationary periodin U.S. historyy was preceded by heavy debt he notes. The chances of a double-dilp recession will be lower if Ben Bernanke is reappointed chairman of theFederal Reserve, Regalia says. If Presidengt Barack Obama appoints his economifc adviser Larry Summers to chairthe Fed, that woulrd signal the monetary spigot would remainb open for a longer he predicts. A coalescing of the Fed and the Obama administrationis “not something the markets want to see,” Regalisa says. Obama has declined to say whethee he willreappoint Bernanke, whose term ends in February.
Wednesday, September 12, 2012
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