On August 25, 2009
Recession Nearing an End, but Economic Recovery Will Take Years
Hooray, the recession is over! Let’s drink a toast, buy a humungous TV and open the throttle on our 401k plans. If only it were that easy. Although signs do suggest the U.S. economy is stabilizing, it’s likely to be in rehab for several years (and as any 12-stepper knows, you never fully recover). The Congressional Budget Office projects that the federal budget deficit for 2009 will hit $1.6 trillion, or 11.2 percent of GDP. That’s a massive jump over 3.2 percent of GDP in 2008 and the highest level since World War II. The major problem is that the country is spending much more and making much less. Total revenues are plunging, dropping an estimated $400 billion, versus outlays…
0 Comments