Now that 2009 has passed into history, analysts have flooded the public with their opinions on how the events of the past year will impact the coming years. While most are optimistic, I feel that last year's developments have greatly exaggerated the imbalances in the U.S. economy. Although we may see a temporary respite from the turbulence, these mistakes will hinder our long-term viability. I fear that we have gone down a road that will destroy the value of the dollar and may even threaten the political stability of the United States.
While celebrating nominal gains in GDP, consumer confidence, and home prices, most commentators conveniently ignore the deep freeze that persists in the private credit markets. The lack of risk capital continues to strangle small businesses – the main creators of new jobs. The Administration has only worsened the situation by positioning itself as an enemy of business, creating great uncertainty among entrepreneurs. So moribund is the labor market that the economic boosters now cling to the oxymoronic hope of a "jobless recovery."
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