It’s the Economy Stupid
This was the famous reminder posted in all of then Governor Bill Clinton’s campaign offices as he ran for President against then incumbent George H.W. Bush. It was there to keep the campaign from being distracted by other issues and to focus on the fact that the economy was bad and people were hurting. It worked.
But the economy is much worse now. And as President Obama fiddles away in the White House with a government take-over of health care, the economy is far from being out of the woods.
Yes, the economy will almost certainly be declared to be technically out of recession in this quarter. Things have stopped getting worse. Monthly job losses have declined. But we should not be sanguine. There are 4 major risks on the horizon which could lead us into a "double dip" or "W-shaped" recession next year. Many economists, including some of President Obama’s advisors, have told me they think that the risk of slipping back into recession next year is at least 50%.
What would cause that to happen? See the following:
1.) First of all, this "recovery" is weak and jobless. There… Read More