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Monday, November 14, 2011

Rising Risks of Recession

The situation in Europe has increased the chances of a recession in the US (extract of extract via):

Future Recession Risks, FRBSF Economic Letter: ...odds are greater than 50% that we will experience a recession sometime early in 2012…. Prudence suggests that the fragile state of the U.S. economy would not easily withstand turbulence coming across the Atlantic. A European sovereign debt default may well sink the United States back into recession…

The Fed appears to be taking some precautions, though perhaps not enough, and a wise Congress would be talking about how to do the same, i.e. how to take action now to insure against the rising future risks. Unfortunatley, wisdom is not the strong suit of this (or any?) Congress, and we'll be lucky if it doesn't make things worse.

    Posted by on Monday, November 14, 2011 at 02:07 PM in Economics | Permalink  Comments (7)


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