Feb 082010
As if you needed 7 reasons…but here are some major concerns that could tip the economy back over the edge.
- Rising Chinese inflation will cause China to reign in lending, which could pop the overcapacity bubble.
- European nations are struggling with deficit/debt crises – another hit to global banks, with spillover potential.
- Fed MBS purchases are expiring in March – a hit to mortgage rates, housing and banks.
- California is on the edge of bankruptcy.
- Commodity prices have dropped off a cliff, signaling slowing Chinese demand.
- Global banks still have trillions of dollars of bad assets on their books.
- Small businesses, the engine of US growth, are not hiring.
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