The U.S. economic recovery has been weak and the looming fiscal cliff threatens to act as a further drag on the economy.
Gluskin Sheff economist David Rosenberg says this is the softest recovery ever recorded considering the massive government stimulus over the past three years. And the fact that recovery has been so weak shows that policymakers still face three major headwinds.
First, the U.S. is still in "the throes of a consumer debt paydown cycle which is unprecedented and inherently deflationary." It typically takes six - seven years before deleveraging cycles are done and the U.S. economy is still not even at halfway through running its course.
keyboard shortcuts: V vote up article J next comment K previous comment