With this morning’s announcement that the economy shrank by 0.1% in the 4th quarter of 2012–unexpectedly!–the specter of another recession looms. The Associated Press doesn’t try to sugarcoat the news; it terms the decline a “stunning drop.” What to do, now that the worst recovery in history seems to have ground to a halt and the economy is slipping into reverse? Anything that might actually help is anathema to the Obama administration, so the AP suggests that the administration may sing the only tune it knows:
…defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
Sure. Because “Federal Reserve stimulus” has worked so well up until now.
If another recession is around the corner, Obama will no doubt try to blame it on President Bush. Obama probably has the chutzpah to pull this off, but his teleprompter might be too embarrassed to display the message.
It could be worse: Great Britain is anticipating a triple-dip recession. Still we shouldn’t get cocky. The Obama administration has four long years to go.