At 2 p.m., the stock market is down again. The Dow is currently down by about 80 points. Federal Reserve Gov. Kevin Warsh threw some cold water on hopes for a strong recovery. He said he expects business and consumer spending to remain weak for several quarters, and unemployment to remain high.
Warsh explained that there’s a difference between the economy pulling out of its tailspin and a truly robust recovery. He said that the global economy may be in for a prolonged period of slow growth. Warsh said, “given the serious misallocations that marked the onset of this recession, there is good reason to believe that the period of reallocation will be deeper and last longer.”