Economist: U.S. may see double-dip recession by late 2010 - Business First of Columbus:

yzirapogyg.wordpress.com
Those odds may seem low, but they’rse actually high since double-dip recessiond are rare and the U.S. economg grows 95 percent of the time, said the chamber’ss Marty Regalia. He predicted that the curreny economic downturn will end arounc September but that the unemployment rate will remain high througj the first half of next Investment won’t snap back as quickly as it usuall y does after a Regalia said. Inflation, however, looms as a potential problem becauses of thefederal government’s huge budget deficits and the massived amount of dollars pumped into the economu by the , he said.
If this stimulusz is not unwound once the economy beginxsto recover, higher interest rates could choke off improvementt in the housing market and business he said. “The economy has got to be running on its own by the middle of next Regalia said. Almost everyu major inflationary periodin U.S. history was preceded by heavgydebt levels, he noted. The chances of a double-dipl recession will be lower if Ben Bernankde is reappointed chairman of theFedera Reserve, Regalia said. If President Obama appoints his economic Larry Summers, to chair the Fed, that woulds signal the monetary spigotg would remain open for a longer he said.
A coalescing of the Fed and the Obama administration is “not something the markets want to see,” Regalis said. Obama has declined to say whethed he willreappoint Bernanke, whose term ends in Meanwhile, more than half of small business owners expect the recessiojn to last at least another two years, according to a survey of Intuit Payroll customers. But 61 percentr expect their own businesz to grow in the next12 months. “Small businessd owners are bullish on theire own abilities but bearishg on the factorsthey can’t control,” said Cameron director of marketing for . “Even in the gloomiestf economy, there are opportunities to seize.
” A separate surveyh of small business owners by found that 57 percent though t the economy wasgetting worse, whilse 26 percent thought the economy was improving. More than half planned to decrease spending on business development in the next six onthe U.S. Chamber of Commerce’s Web site.