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



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