“Improving U.S. economic data, including today’s strong personal income and spending report, has economists cranking up their forecasts for GDP growth.
However, the economy is nevertheless fragile and the risk of a recession is always within sight.
But what could cause the economy to tip into recession?
Some think that it could be premature tightening by the Federal Reserve. Or spillover from the euro crisis. Or a hard landing in China. Or turmoil in the Middle East.
Gluskin Sheff economist David Rosenberg thinks it won’t be any of those. Rather, he thinks if we slip into a recession, it’ll be Washington’s fault.
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