05 Oct '11, 6am

Faith in US economy evaporates ahead of 2012 vote

WASHINGTON: It is easy to imagine the gasps of horror rising from the White House. Sometime in the not too distant future -- perhaps just weeks before the November 2012 presidential election -- the semi-official National Bureau of Economic Research declares the US economy is back in recession. It is a scenario that a growing number of economists believe is probable and which could hand President Barack Obama the single biggest challenge of his reelection campaign. "The US economy is indeed tipping into a new recession. And there's nothing that policymakers can do to head it off," said the Economic Cycle Research Institute, a respected body which for the last year has resisted predicting a double-dip recession. "It's important to understand that recession doesn't mean a bad economy -- we've had that for years now," the ECRI added to remind everyone concerned of the stakes. ...

Full article: http://www.channelnewsasia.com/stories/afp_world/view/115...

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