Tags: Economic | Pessimism | Grows

Economic Pessimism Grows Under Obama

By    |   Wednesday, 09 Dec 2009 03:03 PM

Despite signs that the prolonged recession is near an end, Americans remain worried about the economy.

Almost half of those surveyed in a Bloomberg poll now feel less financially secure than when President Barack Obama took office in January.

And only 32 percent of respondents see the country headed in the right direction, down from 40 percent in September.

“The recession may be over, but the administration seems to be losing the battle when it comes to winning the hearts and minds of Americans,” Chris Rupkey, chief economist for Bank of Tokyo-Mitsubishi UFJ, told Bloomberg.

“This is important because the spending of consumers is the main factor that will turn the economic recovery into a self- sustaining one.”

Consumer spending accounts for about 70 percent of the economy.

High unemployment – now 10 percent – was rated as the greatest threat to the economy in the poll, followed by the budget deficit and high taxes.

Less than one-third of respondents expect the economy to improve in the next six months.

Americans are skeptical that the government can reduce unemployment or the deficit, the poll shows.

Many experts are pessimistic too. Pimco star bond fund manager Bill Gross says the economy is weak enough to keep the Federal Reserve from raising rates next year.

“We will need another 12 months of 4-5 percent nominal GDP growth before Bernanke and company dare lift their heads out of the 0 percent foxhole,” Gross wrote on Pimco’s web site.

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Despite signs that the prolonged recession is near an end, Americans remain worried about the economy.Almost half of those surveyed in a Bloomberg poll now feel less financially secure than when President Barack Obama took office in January.And only 32 percent of...
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Wednesday, 09 Dec 2009 03:03 PM
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