Historically, economic recoveries are slowed when businesses are unsure of what the rules on the playing field will be like… This situation is most commonly presented in the form of some kind of change or creation of government legislation. In this case, the Federal government has effectively put a clamp on the credit markets by scrutinizing and closing down banks, selectively bailed out certain financial companies, bought out an auto manufacturer & oversaw its sale to a foreign entity, increased spending and the national debt three-fold, and is pursuing a universal health plan that will most certainly impact the cost of doing business.

Political ideology aside, the fact (well supported by historical data) is that the more legislation Congress creates that directly affects business, the longer businesses will wait to see how they are affected before getting back into the game.

Suddenly, the hiring freeze and rising unemployment rate makes sense.