Even With Fed's Radical Rate Cut, Fears Persist of an Extended Recession
Reader Comments
@ Morton
Morton,
There is a structural problem the U.S. economy. Since the '91 recession, the U.S. economy has become too dependent on residential / commercial construction and finance. In other words, we've traded too many manufacturing jobs associated with general consumption for things that cost a lot (i.e., homes and cars) and aren't purchased very often. Moreover, we've become way too dependent on low interest rates. I'm not saying I've got the answers, but President-Elect Obama and the rest of us have a very rough road ahead. In addition, the government can't spend its way out of this. Until Americans demand that more of the things they buy are made in the USA using American ingenuity and more realistic wages and benefits, government spending on roads, bridges, and replacing bulbs in building aren't going to create enough jobs. I think this is something that you're trying to state: global wealth redistribution is something we've got to get used to. Finally, I wouldn't be surprised if the U.S. economy is in a recession at least through summer '10.
Recession Fears
This is not a recession. It is a reality check that revalues the worth of the dollar, the government, and the credit of the United States.
The is a difference between what we want and what we can afford. There is also a difference between what we believe we deserve and what earn.
