Two days after the election, CNBC published a dour report on the economy. Shockingly, CNBC is predicting that the U.S. economy is likely headed for another recession.
CNBC so helpfully tells us that, now that the election is behind us, the light in our economic tunnel could be a “freight train.” Gee, it sure would have been nice to know that before the election, wouldn’t it?
Slowing corporate profits, the remnants of Superstorm Sandy and the ramifications of the “fiscal cliff” in Washington are expected to result in at least two quarters of slow or no growth that could make investing even trickier than it was during the ups and downs of 2012.
But that isn’t all. The bigger problem we are now told, is that the economy never achieved “escape velocity” in order to get past the low growth rate we have been experiencing.
The economy, CNBC says, never got to the point where we’ve had enough growth to withstand the sort of shocks that a Hurricane Sandy or a continued or renewed bad business climate would wreck upon it.
Obama didn’t fix a thing, it turns out.
All this means that the fiscal cliff won’t be easily weathered in an economy as delicate as the one in which we are mired.
So, what could be a solution? CNBC says get ready for higher taxes. But this “solution” is already spooking investors and businessmen. All expansion will likely cease immediately as the business sector sits idle waiting to see what Washington will do to “fix” all this.
In short, the business and investing sector is mighty afraid of an Obama second term. This means any tiny bit of growth we’ve been seeing lately might quickly stop.
Good thing Obama got re-elected, isn’t it?