Here Comes The Double-Dip Recession

• March 13, 2010

I’ve been warning of a double-dip recession since last year. Right now we have economic growth, and technically the recession may have ended (though it’s hard to tell looking at the state of our job markets). But most of the economic activity we’ve seen has been fueled by government deficit spending.
What happens as that spending dries up? What happens when we’re faced with paying off the deficits that spending created with higher taxes?
Another recession.

A slew of poor economic data over the past two weeks suggests that the U.S. economy is headed for a U-shaped recovery—at best—in 2010. The macro news, including data on consumer confidence, home sales, construction and employment, actually suggests a significant downside risk even to the anemic levels of growth which RGE forecast for H1. The U.S. faces continued challenges in H2—particularly as historic levels of fiscal stimulus fade—and appears far too close to the tipping point of a double-dip recession.

We simply cannot spend our way out of recession. In the short term we may create the appearance of recovery, but we’re putting this spending on the national credit card. One day the spending has to end. One day we have to pay off that credit card. With big, big interest.
We’re robbing from our future prosperity to fuel this so-called “jobless recovery.”

Tags: Asshats, Domestic Issues, Politics

http://Array Brent

So you are saying that we are in a recovery right now? The recession has ended for now?
robert108

No! The private sector is still shrinking. While the White House claims unemployment is 9.7%, unemployment in the public sector is about 3%. There is no recovery for the real economy.
sayanything-4603

dino peoples hurts always make you laugh funny how you always say someone elses kids and grandkids will pay either you are raising 5-6 gen welfare trash along with yourself. were just hoping the person you still your internet from finaly password protects it
sayanything-2819

Give it up, Dino. No one here but your fellow loony bin residents is taken in by your delusions.
sayanything-5371

A jobless recovery will never work. Who will pay the taxes to try to pay down the debt? The whole idea of the government spending our way out of a recession was pure liberal hubris and ignorance of the lessons on history. We are in a huge hole and will stay there as long as Obama is in the White House or out of it campaigning non-stop to promote his idiotic policies.
http://SayAnythingBlog.com The_Whistler_ofnd

Shades of the great depression. All of FDR’s stuff made things worse.

Heck at least FDR made people feel better about the future. Obummers a drag on everyone.
robert108

“Empirical evidence shows I am right. ”

Coincidence doesn’t prove causation, moron; you have no “evidence” of any kind. You cannot make a cause and effect argument for any of your lies. You are ignorant of basic economics, and simply spew your Soros talking points like a mindless parrot.
sayanything-4603

the pic used looks like shades of Hitler railing against what ever his deranged mind can attact
sayanything-6521

Economics 101 says that the current model can not and will not survive. The only question now is how badly this is going to end for Americans. Will we be killing one another, or will we simply suffer greatly as all former world powers do when they tip over.
robert108

“We’ve got more government than we can afford as a nation. We need less.”

You got that one right, Rob! Simple arithmetic.
robert108

You still ask this question, after you have been smacked with the truth countless times, moron?
Dem market rigging caused the recession, as it causes all economic downturns, and the tax rate reductions yielded increased revenues to the Treasury, but the greedy Dems spent it all, and more.
Fiscal conservatism is the only answer to over seventy years of Dem wasteful social spending schemes.
robert108

One small point, Rob: it’s not a “double dip” recession, it’s just one long, ever deepening recession, caused by more and more wasteful spending and a lack of fiscal responsibility. The private sector continues to shrink, and the expanded public sector is simply an expense to a shrinking base of taxpayers. It’s the leftie version of a fiscal circlejerk.
sayanything-342

We have the wrong people in the White House. Obama really doesn’t have a clue, he’s hoping that the economy will right itself so then he can impose more social reform. Basically, as Rob stated, we have too much government and too little cash to cover it. We need a serious commitment from the fed to control spending and cut unnessisary programs. Unfortunately that will never happen under this administration when they believe that everyone (except themselves) should suffer equally.

My only advice is to get your own house in order because this current government administration are a buch of selfish, ignorant a-holes who do not give a rats a$$ for you or anyone else. They want one thing only…POWER.
sayanything-4416

I wonder how we got this recession? I mean, the huge tax cuts of the bush years were supposed to grow the economy!

Face it. Your ideas failed. Miserably. Conservatives have no credibility to offer solutions to the problems caused by their wrong-headed policies.
http://sayanythingblog.com robport

The problem really is simple.

We’ve got more government than we can afford as a nation. We need less.
sayanything-6955

Your view of history Magoo is not shared by many, but whatever your therapist tells you.
sayanything-4642

i hope all of us that said this are wrong. its bad for EVERYONE. spending and giving more cash to people that cant afford it led us here…… yet, we have leaders on both sides that still want to continue that behavior. its like they want us to die, but we free people keep fighting it.
sayanything-4416

Empirical evidence shows I am right. Republicans ran the country into the ground and your kids and grandkids will pay dearly for it.

Makes me laugh!
bikebubba

The bright side is that the economic models we’re using to calculate the effects of slowing down on government spending also failed to calculate the effects of the ramp-up of government spending.

Even brighter is the Austrian view of the economy, which notes that as money returns from unproductive users (governments) to productive users, economies rebound. Hopefully this will be yet another case of this.

SayAnythingBlog.com

Here Comes The Double-Dip Recession

Create a SAB Readerblog

Recent Comments