The Congressional Budget Office, which has no ties to the White House, says that the economy will recover in late 2009, which they say is “largely the result of fiscal stimulus.” source
Despite that positive development, this negative development should get conservatives in a tizzy. The deficit will reach a record $1.6 trillion. The old belt doesn’t fit anymore. source
Enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.
Financial smart guy Warren Buffett • Describing why we should be concerned about the high amount of debt currently floating around our economy. He says that we’re in “uncharted territory” and that the effects of the debt could nearly be as bad as the financial crisis itself. Before you discount it, remember that Buffett knows what he’s talking about. • source