Expert predicts impending recession and changing economic landscape.

Economist Steve Blitz warns that a U.S. recession may be imminent as banks slow lending and corporate profits weaken. The Treasury's plan to issue T-bills to replenish its coffers could divert even more money away from markets and the economy. Signs of slowing corporate earnings growth could push the economy over the edge, leading to more layoffs and a slowdown in wage growth. Blitz also cites a drop in railcar loadings of lumber and metal products as a sign that a recent uptick in the manufacturing economy is already fading. Even if the U.S. manages to delay a recession, the Federal Reserve and markets could face other problems, like a resurgence of inflation.