Hopes that economic recovery will be quick or easy have been shadowed by a fresh flood of bad news. The housing market continues to stumble lower, construction of new homes fell sharply last month, and foreclosures surged in the first quarter. In Maryland, an array of companies announced continuing layoffs this week and General Growth Properties, owner of the Rouse malls and developments, filed for bankruptcy court protection.
The bad news is a reminder that the clock is running on the Obama administration's effort to jump-start the economy. While the president has been cautious in his assessment of the timing of a recovery, some key advisers have been more hopeful, suggesting the comeback will start later this year.
The longer economic activity remains weak, the more likely the White House will have to go back to Congress for more billions to reinforce the stimulus. And the more stimulus money Mr. Obama asks for, the more likely lawmakers will scrap many of his ambitious policy proposals, including major health care reform and aggressive investments in education, energy, housing and infrastructure, because they will add too much to the huge and still swelling federal budget deficit.
