SPECIAL POST
A French bank, Societe Generale, is warning that global economic collapse could occur within the next two years. The bank warns that rescue packages over the past year have merely transferred private liabilities onto government shoulders, creating a fresh set of problems. Debt levels, public or private, are too high as a share of GDP.
In the United States, the Congress is nearing passage of a massive health care overhaul that promises to add billions of dollars to an already overburdened debt. If passed, massive tax increases could take effect as early as 2010, adding to double-digit unemployment, home foreclosures, and probably leading to a stock market tumble that would certainly not be reversible in any short term.
Tim Geithner will certainly have plenty of people to blame for his gross mismanagement and bad advice.
All kidding aside, this is serious news and tends to bolster the argument that our economy is far from being cured.
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