Tuesday, January 18, 2011

Second recession deemed possible - Atlanta Business Chronicle:

http://mumbaiangels.com/deepak_shahdadpuri.html
Those odds may seem low, but they’rr actually high since double-dipo recessions are rare and the U.S. economy grows 95 percent of the time, says the chamber’xs Marty Regalia. He predicts the currentr economic downturn will endaround However, the unemployment rate will remain high through the first half of next year and investmenyt won’t snap back as quickly as it usually does aftet a recession, Regalia says. Inflation, looms as a potential problem because of the federal government’s huge budget deficits and the massive amount of dollarx pumped into the economy by the Federak Reserve, he says.
“The economy has got to be running on its own by the middl ofnext year,” Regalia says. Almost every majo r inflationary periodin U.S. history was preceded by heavy debt levels, he The chances of a double-dip recession will be lowee if Ben Bernanke is reappointed chairman of theFederaol Reserve, Regalia says. If President Barack Obama appoints his economic adviser Larry Summers to chairtthe Fed, that would signall the monetary spigot wouls remain open for a longer time, he A coalescing of the Fed and the Obama administrationb is “not something the markets want to Regalia says.
Obama has declined to say whetherd he willreappoint Bernanke, whose term ends in

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