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Tuesday, March 18, 2008
The mailbox is bursting with your comments. This week: your thoughts on our special series "The Middle East at Work," including your personal observations from living and working in Dubai.
Letters in a computer with red mailbox flag (iStockPhoto)
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I am not buying the whole "there might not even be a recession, and if there is one, it will be brief." If oil prices continue to rise, driving inflation, the Federal Reserve will eventually be forced to raise interest rates in the middle of a slowdown. We are already seeing signs of a Japan style "liquidity trap" which is preventing the free flow of money from the banks to Main Street. I think the government's efforts to bail out the housing market will be about as effective as the response to Hurricane Katrina...
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