Archive for the ‘double dip recession’ Category

These Rose Colored Glasses…

February 2, 2010

“The White House budget proposal released Monday assumes the U.S. economy is heading for a six-year run of above-average economic growth with no sign of a worrisome spike in inflation or interest rates.

I don’t know why I  keep on believin’ you need me,
When you prove so many times that it ain’t true,
And I don’t find one good reason for staying,
Maybe by leaving would be the best for you,

But these rose colored glasses, that I’m looking through,
Show only the beauty, cause they hide all the truth,

And they let me hold on to the good times, the good lines,
The ones I used to hear when I held you,
And they keep me from feeling so cheated, defeated,
When reflections in your eyes show me a fool

And, what is it they are smoking? Inflation will rise, interests rates higher, gold prices to greater heights, dollar continues its losses, and meanwhile Freeport McMoRan (FCX) was up over 200% in 2009.

The Voice of Harvard Ec10 Speaks…

January 15, 2010

The ultimate insider, and the most mainstream of 1050 Massachusetts Ave. economists lately, Martin Feldstein, continues to warn of a possible double dip recession…

The U.S. economy faces a “significant risk” of another recession in 2010, unless the Obama administration promotes confidence it can manage a growing fiscal deficit, a prominent Harvard University economist said Thursday.

Without public approval, namely from investors, U.S. bond yields will climb, taxes will rise and a fragile recovery will be short lived, Martin Feldstein told Reuters in an interview.

“I don’t think the Obama administration is doing anything to reduce that risk. They are assuming the momentum is there,” said Mr. Feldstein, who is also president-emeritus of the National Bureau of Economic Research, the arbiter of when U.S. recessions begin and end…