impact of financial crisis on us economy

U.S. Economy In Crisis: How To Prepare For The New 2012 Recession

just finished a battery of media appearances on Fox Business, Bloomberg, BNN and CNBC Asia, and without exception I was asked about two things: President Barack Obama's jobs bill and the U.S. Federal Reserve's "QE3."

The first thing investors and analysts want to know is whether or not the president's jobs bill will work. The answer to that question is "no" - not as it stands, anyway.

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The Real State of the Union: A Rescue Plan for the U.S. Economy

If Money Morning's Keith Fitz-Gerald were granted an audience with U.S. President Barack Obama and Federal Reserve Chairman Ben S. Bernanke, the one message he'd deliver is this: It's time to stop the gravy train and reform the U.S. financial system once and for all.

In fact, this may be our last chance.

"If I had the chance to sit down with President Obama and Fed Chairman Bernanke, I would offer [them an] eight-point plan that's designed to increase growth, provide jobs and increase America's international competitiveness," says Fitz-Gerald, a well-known commentator and bestselling author who is Money Morning's chief investment strategist.

In this second installment of a two-part interview with Money Morning
Executive Editor William Patalon III, Fitz-Gerald took the time to outline that eight-point rescue plan for the U.S. economy. In that plan, the changes Fitz-Gerald calls for include:

  • Cuts in federal spending.
  • Pension reforms at all levels.
  • A halt to weak-dollar policies.
  • And a realization by Washington that it's time to take China much more seriously.
In Part I of this interview, which appeared yesterday (Thursday), Fitz-Gerald assessed the health of the U.S. and global economies, provided his outlook for the U.S. stock market and for commodity prices, and even offered an investment strategy for 2011.
The highlights of Part II follow below. And if you missed Part I, you can access yesterday's story by clicking here.

To read Keith Fitz-Gerald's fix-it plan for the U.S. economy, please read on...

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