The government and the Fed can do no more than they already have, if not less. You can’t go lower than 0 fed funds rate, QE is already in place, the Federal Reserve is backstopping bonds which is just a form of unreported redivatives, and the government is already bushing the barrier on US Treasury bonds they can float.
“We have heard about the so called economic recovery for months now and while it is true that markets are higher we have our doubts that any of this optimism is seeping into the real economy. Because of this we tend to believe that we are headed for a double dip recession, assuming that we ever got out of the first one.
Lately we have started to see renewed signs of a downturn in some of the economic indicators that we follow. All things employment have been bad with the unemployment rate, exhaustion rate, and unemployment 27 weeks or longer rates up. Anyone that is seeing an upturn in employment must be on an acid trip as there are no signs of anything but more unemployment.”
