I'm curious.... What do you think was the largest single contributing factor to the 2008 meltdown?henryg said:The biggest danger to the US economy will arrive at the end of the year when the automatic spending cuts of the Budget Control Act kick in. This will provide enough of a sudden fiscal shock to GDP to push us back into recession no matter who is in office.
If the Democrats take charge post-election there is the slim chance that they will grow a pair and at least do something to reduce the size of the fiscal shock. If the Republicans get in, dogma will trump reality and they are sure to do everything they can to make the size of the cuts even bigger and combine them with even larger tax cuts. If that happens the party that brought you the two largest financial crashes of the last century may manage to put us in a deflationary spiral that could end up in great Depression II only months after taking power.