Re: [OPE-L] The Weak Recovery and the Coming Deep Recession

From: Rakesh Bhandari (bhandari@BERKELEY.EDU)
Date: Fri Mar 24 2006 - 00:35:40 EST

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><http://www.thomaspalley.com/?p=41>The Weak Recovery and the Coming
>Deep Recession
Palley writes:

>The 2001 recession was business investment-led,


But why isn't is possible that business investment will step in
sometime in 2007 or 2008 as deficits and interest rates are spent as
stimuli? The tax and labor policies are favorable, no? Or will
expected profits from new investments be dim? If so, why? Palley does
not seem to speak to these questions.

Rakesh

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