Is there going to be a US recession in 2006?

Question

Is there going to be a US recession in 2006?

Answer 1

No, just general slowing followed by a significant decline in 2007.



Spending in Iraq and Louisiana along with a continuation in consumer spending will carry 2006. Once real estate commences a decline and real estate refi $'s are not available to augment consumer spending and the budget deficiet eliminates the possibility of a tax cut as a stimulus then the consumer will no longer have the ability to carry the economy by spending. Escalating long term interest rates and weakness in the dollar compared to foreign currencies combined with continuation in budget deficeits will lead to major slowdown in foreign investment in the private and public sector (bonds). A prolonged recession will follow that will include significantly higher unemployment as corporations cut costs by continuing to outsource labor.



The fed will first stop the short term rate increases and then they will try to cut rates, but it will be too litle to late. Bush will go down in history as the weakest President of all time.

Answer 2

No, 2006 going to be Ok years but it not going to be robust grow either. As for the stock market, it probably the same like last year.

Answer 3

The real estate market will be cooling off. Stocks are positioned for a pretty good return.