Economist: U.S. may see double-dip recession by late 2010 - Sacramento Business Journal:

fugowirik.wordpress.com
Those odds may seem low, but they’re actualluy high since double-dip recessions are rare and the U.S. economyu grows 95 percent of the saidthe chamber’s Marty Regalia. He predicted that the currenyt economic downturn will end around September but that the unemploymenty rate will remain high throughj the first half ofnext year. Investmenrt won’t snap back as quickly as it usually does afteera recession, Regalia said.
however, looms as a potential problem because of thefederal government’s huge budgetg deficits and the massivr amount of dollars pumped into the economy by the , he If this stimulus is not unwound once the economgy begins to recover, higher interest ratex could choke off improvement in the housing market and businesas investment, he said. “The econom has got to be running on its own by the middled ofnext year,” Regalia said. Almost everuy major inflationary periodin U.S. history was precedexd by heavydebt levels, he noted.
The chances of a double-dil recession will be lower if Ben Bernanke is reappointed chairmanh of theFederal Reserve, Regalia If President Obama appoints his economic adviser, Larry Summers, to chair the Fed, that would signal the monetary spigot would remain open for a longerd time, he said. A coalescing of the Fed and the Obam administrationis “not something the markets want to Regalia said. Obama has declined to say whetherd he willreappoint Bernanke, whose term ends in Meanwhile, more than half of small businesx owners expect the recession to last at least another two according to a survey of Intuitr Payroll customers.
But 61 percent expecr their own business to grow in the next12 “Small business owners are bullish on their own abilitiews but bearish on the factors they can’t said Cameron Schmidt, director of marketing for . “Evenb in the gloomiest economy, there are opportunities to A separate survey of small business owners by founs that 57 percent thoughg the economy was getting while 26 percent thought the economy was More than half plannexd to decrease spending on business development in the next six onthe U.S. Chamber of Commerce’es Web site.