Chance of a Double Dip Is 50%: Analyst (CNBC)
By Daniel at 30 December, 2009, 1:01 pm
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“The odds of the U.S. economy slipping back into recession next year are 50/50 if the government doesn’t introduce any fresh stimulus measures, Len Blum, managing director at Westwood Capital, told CNBC Wednesday.
“The only reason that the U.S. economy is doing as well as it is, is because of the government stimulus package,” Blum said.
“Now, if the government doesn’t introduce another stimulus package, this one will burn off in the first half and in the second half we could easily slip back into recession,” he said.
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“The government is in massive, massive debt and at some point it is going to have to be paid back and if we don’t pay it back, down the road there is going to be some real problems,” he said.
There is even a risk of hyper-inflation because of the money-printing policies and the underlying strength of the economy is just not there, according to Blum.”
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Slideshow: Government Debt Issuers Most Likely to Default
http://www.cnbc.com/id/34629209
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