Posted on 04/01/2009 8:43:33 PM PDT by NormsRevenge
NEW YORK (Reuters) - Although the U.S. economy is expected return to growth later this year, there is a danger of a second recession if monetary easing and a weak dollar leads to increased inflation expectations, a report said on Wednesday.
Massive stimulus spending and moves by the Federal Reserve to fuel economic activity is expected to jump-start the anemic U.S. economy in the last quarter of this year after it contracted 6.3 percent in fourth quarter of 2008.
But the Fed's moves to boost the economy by slashing interest rates and buying up billions in government debt could have undesired consequences, The Conference Board, a private research group, said in the report.
"If the United States experiences a too-rapid recovery, there may be a risk of another recession in 2010," said Bart van Ark, vice president and chief economist of The Conference Board.
(Excerpt) Read more at reuters.com ...
Naturally! When you use the wrong medicine, the disease reasserts itself. This is as predictable as the rain.
My question is, Is it possible for a Communist nation to tell when it hasn’t entered a recession? If not, I guess we won’t know when this 2nd one hits.
A double dip Democrat depression...
Does this mean the “first” recession is going to go away?
You win the Best Post of the Day award!
No, it means we skip the last half of the first recession and proceed directly to the third recession for one week and then double back to pick up the second recession as the fourth recession takes shape over the Gulf of Mexico...
Ya think?
Guess the spending til they drop, didnt work.
Makes about as much sense as everything else these days.
My motto lately is just keep buying ammo, and everything will be fine. ;^)
My thoughts exactly!
Not a chance!
Ain’t gonna wait until next year. The market is a sucker’s rally right now. By the end of this summer, the economy and the market will tank like no one on earth has ever seen. Mark these words.
In order to have inflation there needs to be a restarting of the credit engine and unemployment will have to decrease rapidly so there will be money to chase after goods and services. Neither of these is going to happen. We are in a deflationary cycle right now and it isn’t going to stop for a while.
Does this mean that the Second Great Depresssion will be over soon?
There will be no economic recovery until he is out of office.
Well you heard Barry talking about how we can’t just go from upswing to downswing right?
The fool wants to just, I dunno, “cancel” the business cycle. In other news, I’ve read a few news articles about People’s Republics out in California that have escaped the downturn since they had no growth the begin with.
They’re proud not to have as many vacant business since they’ve blocked development for years and years. In other words, since they never had the 90s and post-2000 prosperity to begin with, they didn’t have much to lose!
North Korea never has to worry about a stock market selloff or business downturn either. As we race to the bottom, maybe we’ll be as *lucky*...
I guess it matches up nicely with the effort to eliminate those who are “too rich” by making everyone equally poor.
"CRE(Commercial Real Estate) has its own vicious cycle. Unemployment increases, demand for office space decreases, rents fall, and then commercial property prices fall. CRE prices have already fallen and the next leg down could make the subprime crisis look like a cakewalk."
The Libturds blame this recession on Bush, and it leaves me wondering who they are going to blame on the second.
I tend to agree we have more deflation ahead, but you can have inflation and high unemployment together. unfortunately...
Stagflation....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.