US heading for another downturn
Posted by admin . Published on 08 July 2009, Received
The US economy is already showing signs of further weakness, if you have to go by the record unemployment figure and stagnant consumer spending , in spite of huge stimulus spending by the government. Realizing the need to continue pushing the economy towards recovery, Obama’s key administration officials have already started talking about another bout of stimulus spending. This may not be taken easily by the market, and there could be more trouble for the entire US financial markets in the coming months, because interest rates will start shooting up, which could in turn spook up the housing markets .
That can lead to billions of dollars of write offs by banks and mortgage lenders who are barely showing signs of recovery.
