It seems that the economist have come around to what my readers have known for a while we're in a recession.
I don't want to be a negative Ned but I've said here a couple times that I think the globe, led by the US, is in for some pain over the next year or maybe more. To anyone remotely familiar with the concepts of business and economic cycles this shouldn't be a surprise. Our market in almost every industry was way oversold and thus must come back down. This is precisely why you budget and spend responsibly during times of excess, this goes for individuals, businesses and governments.
The govt will do all that it can to minimize the pain, but it will still hurt nonetheless and in the end the govt can only pump in so many monopoly dollars before our economy becomes ersatz. As a country we are going to have to return to net or marginally deficient trade balances, which indicate REAL NEW dollars being introduced into our economy. We've got to develop some type of technology, widget or knowledge that we can sell en masse to the rest of the world. A country of our size can't maintain dominance by being a service based economy, we can't all sell insurance.
