Economist: U.S. may see double-dip recession by late 2010 - The Business Journal of Milwaukee:

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Those odds may seem low, but they’rer actually high since double-dip recessions are rare and the U.S. economt grows 95 percent of the time, said the chamber’x Marty Regalia. He predictedr that the current economic downturn will end arouns September but that the unemployment rate will remaib high through the first half of next Investment won’t snap back as quickly as it usually does after a Regalia said.
Inflation, looms as a potential problem because of thefederal government’s huge budge deficits and the massive amount of dollarsx pumped into the economy by the , he If this stimulus is not unwounf once the economy begins to recover, highet interest rates could chokse off improvement in the housing market and business investment, he said. “The economy has got to be running on its own by the middlw ofnext year,” Regali said. Almost every major inflationary periodin U.S. histor y was preceded by heavydebt levels, he noted. The chances of a double-dil recession will be lower if Ben Bernanke is reappointerd chairman of theFederal Reserve, Regaliaq said.
If President Obama appoints hiseconomic adviser, Larrt Summers, to chair the Fed, that would signal the monetarh spigot would remain open for a longer he said. A coalescinv of the Fed and the Obama administratiomnis “not something the marketa want to see,” Regalia said. Obama has declined to say whether he willreappointg Bernanke, whose term ends in February. more than half of small business owners expect the recession to last at least another two according to a survey of Intuit Payroll But 61 percent expect their own business to grow in the next12 “Small business owners are bullishg on their own abilities but bearish on the factorzs they can’t control,” said Camero Schmidt, director of marketing for .
“Even in the gloomiesyt economy, there are opportunities to seize.” A separatd survey of small business owners by found that 57 percentg thought the economy wasgettinvg worse, while 26 percent thought the economy was improving. More than half planned to decreases spending on business development in the next six onthe U.S. Chamber of Commerce’s Web