As the jobless recovery continues, President Barack Obama and his liberal supporters argue that the U.S. needs another stimulus or risks a double-dip recession. A look behind the numbers suggests that liberal policies will hand us a double dip whether we get a stimulus or not.
The foreclosure crisis that seems on the brink of spinning out of control may be the decisive nudge that pushes the U.S. into a double-dip recession. Banks that have only just begun to recover from the worst financial crisis since the Great Depression are about to find themselves in straitjackets.
Last week in Washington, beneath a flock of pigs flying south in a majestic V formation, the co- chairmen of President Barack Obama ’s deficit commission released a plan that actually could solve the nation’s pending fiscal crisis.
The world’s economic policy makers have talked up a zero-tolerance attitude toward sovereign-debt defaults. For every troubled national borrower, there seem to be a dozen central bankers ready to hand out cash, always to avoid Armageddon.
Last week, Standard & Poor’s lowered Japan’s bond rating to AA-, the fourth-highest level. By that standard, the U.S. got away with a slap on the wrist from Moody’s Investors Service, which warned merely that “the probability of assigning a negative outlook in the coming two years is rising.”
Last week, I joined a number of economists and others in signing an open letter to Federal Reserve Chairman Ben Bernanke , urging him to discontinue the second round of so-called quantitative easing, or QE2.