Businesses are showing signs that they're ready to spend. The federal government is inducing them to spend, a new rule permits businesses to depreciate their investments right away rather than over several years.
If business spending picks up it won't be a moment too soon. The housing market is tapped out. Unemployment remains historically high and the bulk of the household wealth is tied to home equity, and many households are looking at a lower net worth. Just as the businesses are ready set and go, the global economy now faces shocks fromt he unrest of the Middle East and Northern Africa.
While Egypt is not a big oil exporter, Libya is and so are many other countries in the region. When Hosni Mubarak was ousted from Egypts government in February oil prices jumped to more than $100 per barrel. If it continues like this then we Americans are shipping out of our country more than $200 million a day for gasoline and other energy costs.
And when the higher prices continue the economy could face another plunge into recession.