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Unformatted text preview: increase then the asset markets are unlikely to recover. They believe that the real estate market will take the hardest hit from this Lost Decade. Several propositions come into effect because of the United States deprived labor market. One of them being that the United States is likely to remain reserved and continue to experience deflation for the next couple of years. Also, consumer spending is not expected to return to its previous highs because of reduced income. The nation will see a continuing increase in the personal saving rate as well. Furthermore, the government is going to be pressured into raising tax revenues whenever the initiated tax cuts of the Bush presidency terminate. With our newly elected president, Barack Obama, we may start seeing a shift toward greater economic populism. If employment rates do not improve additional measures may be taken into consideration....
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