Hard Times, Part 2: The Double-Dip Recession

Posted on February 4, 2010

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I think the second dip of the double-dip recession began this week. It’s hard to expect much, if any recovery in 2010 or 2011. Just my opinion.

The worldwide stock sell-off might be only the beginning of another crisis. The financial story was Greece on Wednesday, Spain and Portugal on Thursday. It could be anywhere tomorrow. Debt and uncertainty everywhere you look.

The economic gurus on CNBC argue over what went wrong. Maybe everything went wrong.

Here is my opinion: President Barack Obama and Gov. Martin O’Malley are setting themselves up for failure by focusing on “jobs, jobs, jobs.” Regardless of the conflicting jobs reports Friday morning, unemployment is going to stay above 10 percent. It might hit 20 percent. Just my opinion.

Obama and O’Malley are right to recognize the economic pain of the middle class and the working class. But I am afraid that the jobs are not coming back. They are continuing to melt away. President Obama may succeed in stimulating a temporary jobs recovery. But could that become a jobs bubble? I wish there was an easy answer.

For a dose of economic reality, read Jon Taplin, especially his post, “Life After Empire.”

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Posted in: Business, Economy, News