Four Impediments to Economic Normalcy

In his “Outside the Box” blog posting of July 12, 2010,( at http://tinyurl.com/2a46qlt ) John Mauldin of Investor Insight republished (with permission) a “QuarterlyReview and Outlook Second Quarter 2010” prepared by Van R. Hosington and Lacy H. Hunt of Hoisington Investment Management.  This analysis addresses the question of whether the Great Recession is over and conclude that that the past several quarters may be nothing more than an interlude in a more sustained economic downturn. Mr. Hosington and Dr. Hunt go on to identify and analyze  four impediments to a return to economic normalcy:  1) deficit spending, 2) higher taxes, 3) massive over-indebtedness and 4) and an  impotent Federal Reserve.

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