Tuesday, January 20, 2009

The Double-Bottom Recession

Kasriel (see below post) also thinks that there will be growth in the economy in 4Q09, largely due to the stimulus package.

That, of course, will trigger inflation through monetization of the Treasury and private debt--which will cause the Fed to put on the brakes in 2010, and likely increase the braking pressure through most of the year.

Then there will be another recession, during 2011, probably not as serious as this one.

That 2012 campaign might be very interesting, no?

1 comment:

Deekaman said...

Interesting how the market fell today. coincidence?