We continue to look at a painful policymaking dynamic. The Fed has acted, but doesn’t want to do more. President Obama is desperate to act, but has severely limited options without Congress. And Congress is currently split between those who can’t act and those who refuse to even consider acting.
In the meantime, the economic recovery, which is already weak, is “close to faltering.” It may well lead to a rare event: an economic recession that everyone saw coming, was entirely preventable, but happened anyway due largely to Republican ignorance and neglect. This, of course, will lead voters to reward Republicans, since there’s a Democratic president.