We're Heading for Recession

Weak growth and tax increases doom us
By John Johnson,  Newser Staff
Posted Jun 26, 2010 5:09 PM CDT
A May 3 file photo of a jobs fair in Fort Lauderdale, Fla.   (AP Photo/J Pat Carter)

(Newser) – John Mauldin takes a lengthy look at a slew of economic factors at Business Insider and reaches a somber conclusion: Odds are now better than even that the US will slip into a rare double-dip recession next year. Growth is anemic, with little hope for a turnaround in sight, and he warns that we're heading for what amounts to a "large tax increase in 2011 (from the expiring Bush tax cuts)."

Because of those and other factors, "I think we have to increase the odds of a 2011 recession to 60%, and those odds will rise and fall based on the economic performance of the next two quarters," Mauldin writes. His signoff: "And remember, we Muddle Through. The world does not come to an end. It's just a recession."

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