Two days after the election, CNBC published a dour report on the economy. In what should be a shock to no one, CNBC is predicting that the U.S. economy is likely headed for another recession.
CNBC helpfully informs us, now that the election is over, that the light in our economic tunnel could be a “freight train.” 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.
That isn’t even the worst news. The bigger problem, which is only now being introduced into the media’s narrative, is that the economy never achieved “escape velocity” in order to get past the low growth rate we have been experiencing for the past four years.
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.
This means that the impending “fiscal cliff” won’t be easily weathered in an economy as delicate as the one in which we are mired.
How might Washington fix this? CNBC says to get ready for higher taxes. This expected “solution” is already spooking investors and businessmen. All current expansion will likely cease 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.