Severe

Since the beginning of this blog, the one element for a perfect political storm, which has been missing, is the economic 'hard times'. Bush has managed to alienate a solid majority, without the usual critical ingredient of hard times. But, maybe that's about to change. Nouriel Roubini sees a hard landing.

It is increasingly clear that by now that a severe U.S. recession is inevitable in next few months. Those of us who warned for the last 12 months about a combination of a worsening housing recession, a severe credit crunch and financial meltdown, high oil prices and a saving-less and debt-burdened consumers being on the ropes causing an economy-wide recession were repeatedly rebuffed [by] the consensus view about a soft landing given the presumed resilience of the US consumer.

But the evidence is now building that an ugly recession is inevitable.