Ok folks, here’s the 64 trillion dollar question for you…
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I’m leaning toward dead cat bounce for various reasons… In short all the money the Federal Reserve and the Federal Government are pumping into the economy will have a positive effect and we will see GDP rebound in the short term. In the longer term though all that spending will to lead to a weakening of the dollar and rising inflation that will choke off any recovery. You simply can not spend your way into long term prosperity.
Related
- Roubini says U.S. economy may dip again next year – Reuters
- U.S. Inflation to Approach Zimbabwe Level, Faber Says – Bloomberg News
- New Investor Worry: Treasury Selloff Spiking Interest Rates – CNBC
- Thousands of New Jobs ‘Created’ by Obama’s Stimulus Are Summer Jobs for Teens – CNSNews.com
- Leap in U.S. debt hits taxpayers with 12% more red ink – USA Today
- Bond Vigilantes Confront Obama as Housing Falters – Bloomberg News
- Dollar Hits 5-Month Low on Rise in Risk Appetite – CNBC
- US economy sinks at a 5.7 percent pace in 1Q – Examiner.com