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Wednesday, February 10, 2010

Will government borrowing end the downturn?

Avoiding a double-dip will likely come down to whether business cycle/bubble forces can overcome the unwinding of commercial credit, regardless of the attempt to short-circuit the deleveraging of the credit market with loose money and borrowing and any potential small business tax breaks. However, the balance could be tipped by the fates of Obamacare and the Bush tax cuts.