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01-05-2009, 04:16 PM #1
Engines of Recovery Flame Out as Economy Seeks Obama-Fed Res
Engines of Recovery Flame Out as Economy Seeks Obama-Fed Rescue
By Rich Miller
Jan. 5 (Bloomberg) -- The engines that have lifted the U.S. economy out of every recession since World War II will be of little help this time around.
Inventory rebuilding, household spending, home construction and payroll growth -- the forces that powered, to a greater or lesser extent, each recovery since 1945 -- may remain missing for much of 2009. A glut of unsold properties may keep housing depressed, while shriveled savings will discourage consumers. Companies may be reluctant to restock and rehire while their profits are squeezed.
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