We are nowhere near out of the woods. The danger of deflation is still there. The risk of another stumble in our economy is real, including the continuing fragility of community banks over commercial real estate loans. The global economy remains fragile, with Greece the leading edge of what could become a set of dominoes toppling in Europe as creditors become nervous and raise the premium on loans from several shaky countries, adding to their woes and endangering the euro zone and by extension the rest of us.In the mean time, the political debate over austerity measures versus monetary expansion remains as real today as it did during the 1930's...
Protestors at the G20 Toronto Summit
Source: Ornstein, N J (2010, June 23), Threat of Another Economic Stumble Is Real, American Enterprise Institute.