Although US economy is evidently strengthening, doable US recession may be caused by threats coming from the outside, flipping the standard that when US falls down, the world stumbles as well.
David Levy, who is responsible for the Levy newsletter analysis about the economy, viewed that United States may get sick due to the slow growth of countries linked to the nation, which include China, France, Russia, Brazil, and Italy. Although the economy has a healthy rate and is having a fast pace employment creation since the latter part of 1990s, other countries may drag down the state’s progress due to their downturns. A good example of which is China, which relies on indebted Americans to purchase goods every year yet its sales rate is not good enough, causing an increment in underused factories. Practically, you can also consider here the recent dilemma in Ukraine, which is now starting a drawback effect to the stock market.
It may be considerable for the Federal House to give the Levy forecast on US recession a thought, especially now that the family has an enviable record in analyzing the economy. Ten years ago, Levy predicted that housing in the US may set to burst, causing the drawback of cutting down short-term borrowing rates at the lowest possible levels in order to keep up the economy. Other than that, the economist projected that the annual growth of the country until 2015 will only be at least 3%. Basically, all of it happened.