WASHINGTON, DC – September 19, 2011 – (RealEstateRama) — The economy appears to be on a cusp, flirting with another economic downturn after more than two years of tepid recovery from the most severe recession in the post World War II era. According to Fannie Mae’s (FNMA/OTC) Economics & Mortgage Market Analysis Group, the recovery’s fragility makes it vulnerable to any additional shocks that might cause the economy to slip back into a recession. Possible shocks include a deepening of the financial turmoil in Europe; a dramatic slowdown in emerging economies, especially China; and renewed unrest in the Middle East that could send oil prices surging again. The forecast calls for continued sluggish growth at below 2 percent throughout 2012 — not enough to bring down the unemployment rate, which the Group expects to remain above 9 percent through most of next year.
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