4 Important Issues That Could Prevent Economic Recovery in the U.S.

[Corey Dutton]

At Leen’s Lodge in Grand Lake Stream, Maine, a group of chief economists, money managers, financial advisors and officials from a Fed regional bank got together for a fishing retreat disguised as an economic retreat. The objective was to discuss potential issues that could “derail” the financial markets and the global economy as a whole. Some of these issues may seem obvious to you but still worth pointing out. A reporter from the WSJ decided to get nosy and was able to highlight 4 of the biggest issues:

1. U.S. Households still need to deleverage: Most U.S. households still have the same amount of debt and that debt is increasing.
2. U.S. Leaders have no ability to compromise and this leaves crucial issues unsolved. This is the most obvious issue for most of you reading this post.
3. Boomers have not saved enough for retirement.
4. Deflationary Spiral: Many of the experts who met at the retreat felt the write-downs of Euro debt and write-downs of consumer debt in the U.S. could fuel this.

Anything you would add to this list of issues that could “derail” the recovery of the U.S. economy and the global economy?

Read the entire WSJ article at this link: http://blogs.wsj.com/economics/2012/08/07/four-risks-that-could-derail-recovery/