That’s right, you didn’t misread the headline. Emily Kaiser, Reuters Analyst explains:

“WASHINGTON (Reuters) - U.S. companies, consumers and communities may grow so addicted to government financial help that cutting them off could trigger another recession soon after the current one ends.”

Interesting, so basically all this bailout money is just methadone? And when it runs out we’ll be back on the smack?

Merrill Lynch economist Sheryl King continues:

“The stuttering attempts to repair the banking and lending mechanisms so far by the new administration suggests that by late 2010, the specter of a second dip into recession will be looming large.”

Could this mean further bailouts?  Probably.  More “stimulus”?  You got it.

Read the rest of the article.

Reminds me of the patterned “victim” of recent progressive philosophy:  Convinced they need help to survive, and given help they didn’t really need, eventually they lose the ability to survive without it, thus becoming dependant on it.

Let’s hope we’re wrong about this one.

admin Economics & The economy bailout, Economics & The economy, socialism