Sunday, September 11, 2011

This recession is different

The financial guru's are all over the map. Some predict a possible double dip. The recession officially ended in June 2009.  http://www.marketwatch.com/story/nbers-statement-on-recessions-end-2010-09-20   Others claim the recession never ended. Almost all seem to suggest, this recession is different. Some talk of a possible double dip as the EU disintegrates, Greece defaults, and a combination of bad monetary policy (Bernanke), and worse fiscal policy (Obama), has slowed the economy to a crawl. This link to a Global Macro Monitor  piece entitled "This time is different" makes sense to me :  http://macromon.wordpress.com/2011/09/09/this-time-is-different/  Businesses face overpowering uncertainty. They face Obama's tax hike threats, Obama care business mandates, Obama's/EPA's burdensome over regulation causing potential utility/energy cost hikes, Dodd-Frank over regulation. Businesses don't hire when there is uncertainty. The consumer, whose spending is 70% of the economy, is saving as the housing market sinks ever lower, destroying home equity.  This time it is different. We need hope and change.

No comments:

Post a Comment