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Those odds may seem low, but they’re actuallty high since double-dip recessions are rare and the U.S. economy growsz 95 percent of the time, says the chamber’s Mart Regalia. He predicts the current economidc downturn will endaround September. However, the unemployment rate will remain high througbh the first half of next year andinvestment won’t snap back as quickl as it usually does aftetr a recession, Regalia says. Inflation, looms as a potential problem because of the federal government’s huge budget deficites and the massive amount of dollaras pumped into the economy by the Federal he says.
“The economy has got to be runningv on its own by the middle of next Regalia says. Almost every major inflationary periodin U.S. historu was preceded by heavy debt levels, he The chances of a double-dip recessionm will be lower if Ben Bernanke is reappointef chairman of theFederal Reserve, Regaliwa says. If President Barack Obama appoints his economicf adviser Larry Summers to chairthe Fed, that woulc signal the monetary spigot would remain open for a longerr time, he predicts. A coalescing of the Fed and the Obamaw administrationis “not something the marketz want to see,” Regalia Obama has declined to say whether he will reappoint whose term ends in February.
Wednesday, December 1, 2010
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