The latest poll conducted by Reuters revealed that many economists in the United States have fears that recession will once again hit the country due to the current economic crisis it is facing. Based on the latest result of the survey, the chances of another U.S. recession in the next 12 months rose to 31 percent from 25 percent in the August.
It can be recalled that economists also expressed fears of recession four years back September 2007 to be exact and a year later, investment bank Lehman Brothers collapsed and Western economies plunged into the Great Recession. The survey was conducted on more than 70 economists in the U.S. who all fear that if the government cannot make drastic measures another recession will hit the world’s largest economy. The economists said the world’s biggest economy faces high unemployment, frail consumer confidence and jittery financial markets.
They fear if President Barrack Obama and his economic team cannot address this problem problem properly the chance of a recession is quite high.Guy LeBas, chief fixed income strategist at Janney Montgomery Scott for his part said “The Obama jobs plan has the potential to increase 2012 growth to the 3.4 percent to 3.7 percent range, if passed as is”. LeBas said if by stroke of luck the Obama jobs plan will be passed by Congress the chance of a recession is much slimmer. The economist just hope that U.S. leaders will worked even harder to ensure rece ssion will not hit the country again since it would be a great disaster if it happens.