The second quarter of 2009 is turning out to be far better than estimates, with the US economy recording only 1% negative GDP growth. The numbers are looking far better than the 6.4% decline recorded in the first quarter of 2009.
We need to remember that there has been over 700 billion dollars of spending by the US government in the last few months, which has been a primary driver of the economy. The US government is already running on extra ordinary levels of budget deficit, and it cannot afford to support failing banks , insurance companies and auto companies like it did earlier. Nor can it fund failing mortgage loan takers in the future.
So seasoned experts are cautious on the immediate term outlook for the US economy.