The Coming Bush Recession?
April 28, 2007 by John TuccilloAlan Greenspan raised the possibility a few months ago. Yesterday's GDP number gives more credence to his speculations. First quarter growth came in at 1.3 percent, well below even the pessimistic expectations of analysts. It describes a slowing economy which can no longer ride the housing horse to prosperity. The fact is, now that real estate has cooled, there is no sector of the economy promoting growth. As important, the inflation numbers are troublesome, meaning that the Fed may well be reluctant to step in with a shot of stimulus. We are reaping the fruits of five years of bad economic policy, marked by tax cuts for the rich and billions of dollars flowing to the friends of the president asnd vice president. We are neglecting the educational needs that would keep us in the forefront of the world and we have in effect frozen the wages of the middle class. I don't expect a recession, but the prospects of one occurring are growing--and we have no one but ourselves to blame.














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