Economic outlook for the election

A couple of top notch economists have laid out their vision of what the economy will be on election day. "Ted Gayer, Domenico Lombardi and Darrell West are, respectively, senior fellow and co-director for economic studies; senior fellow; and vice president and director for governance studies at the Brookings Institution. They paint a dismal picture for an incumbent president: The economic outlook is not expected to improve much, if at all, heading into the election. Growth is likely to remain below 2 percent in the third quarter, while the unemployment rate will stay above 8 percent. Concern is growing that Congress won't act to avert the fiscal cliff of tax increases and spending cuts set to take effect in January, which the Congressional Budget Office has predicted would lead the United States into a recession. The crisis in the euro zone is worsening, and the threat to the global economy is escalating. Government bond yields of Italy and Spain have peaked vis-a-vis those...(Read Full Post)