hustbelogehy1857.blogspot.com
Those odds may seem low, but they’re actually high since double-dip recessions are rare and the U.S. economy grows 95 percent of the saidthe chamber’s Marty Regalia. He predicts the curren economic downturn will endaround September, but the unemployment rate will remain high through the first half of next Investment won’t snap back as quickl as it usually does aftef a recession, Regalia said. Inflation, looms as a potential problem becausre of thefederal government’s huge budget deficits and the massive amounrt of dollars pumped into the economy by the Federal he said.
If this stimulus is not unwound once the economy beginsto recover, higher interesrt rates could choke off improvemeny in the housing market and busines s investment, he said. “Thr economy has got to be running on its own by the middld ofnext year,” Regalia said. Almosty every major inflationary periodin U.S. historyt was preceded by heavy debt he noted. The chances of a double-dio recession will be lower if Ben Bernankde is reappointed chairman of theFederal Reserve, Regalia said. If Presidentt Barack Obama appoints his economidc adviser Larry Summers to chaifthe Fed, that would signal the monetary spigot would remain open for a longer he said.
A coalescing of the Fed and the Obama administrationis “not something the markets want to Regalia said. Obama has declined to say whether he willreappointf Bernanke, whose term ends in Meanwhile, more than half of small businese owners expect the recession to last at leasgt another two years, according to a survey of Intuit Payroll customers. But 61 percent expect their own business to grow in the next12 “Small business owners are bullish on their own but bearish on the factors they can’t control,” said Cameron director of marketing for Intuity Employee Management Solutions. “Evenb in the gloomiest economy there are opportunitie sto seize.
” A separate surveh of small business owners by Discoveer Financial Services found that 57 percent thought the economgy was getting worse, while 26 percent thought the econom y was improving. More than half plannede to decrease spending on business development in the nextsix months.
