There has been an abatement of bad news rather than emergence of good news," said Diane Swonk, chief economist with Mesirow Financial, a diversified financial services firm based in Chicago. "Stabilization in a deep hole is not something to pop champagne corks over."
Swonk said she remains concerned about the effect that lingering job losses and high unemployment could have on consumers.
A weak labor market, coupled with banks continuing to tighten credit standards, could mean that even if the economy technically emerges from recession this year, a recovery could be dampened by anemic consumer spending.
*I have been critical of Swonk before, but never doubting her intelligence, hearing this accurate and realistic pessimistic outlook from someone notknown for a bearish lean is eye opening.
CONSUMER is 70% of our economy.......so back to normal?
D
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