Tuesday, August 10, 2010

Is the other shoe dropping?

The word out on the economic front today is American productivity is dropping, and the Canadian housing market is cooling off, which I can attest to as there are two houses on my street that have been up for sale for weeks without even a hint of a sale. This is just more bad economic news to go along announcements of other bad economic news in the past weeks.

The underlying factors that caused the 2008 recession have not gone away. They were only covered up by the trillions of dollars in stimulus funding governments threw at the world economy back then. It is almost a certainty that the problems that caused the recession will rear their ugly heads again once the stimulus funding runs its course. It is just a question of how serious would be their impacts on the world economy.

There have been increasing signs that the world economy is heading towards another economic slowdown. It still remains to be seen whether it will be a full blown recession or just reduced economic growth.

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