The Wealth Hazards Worry Index now indicates that the number of people who believe the U.S. economy could enter another recession in 2010 now stands at 40%. Only 28% are confident a recession will not reoccur in 2010.
“The government stimulus and support programs in 2009 were instrumental in holding the economy together so that the recovery process could get underway,” said Thomas Hertog, editor at Wealth Hazards. “The fragility of the recovery is now center stage.”
Specifically, people are worried about unemployment, rising interest rates, inflation, more foreclosures, and flat or even declining wages.
“Many people remain vigilant as they wait and see if the other shoe is going to drop in 2010,” Hertog said. “The fatigue factor has set in, and consumers want to know that their jobs are safe, their home values will not fall another 10%, and that folks in government are not going to choke off the recovery by letting support programs end before they fully stimulate the economy.”
