Thursday, July 23, 2009

Dismantling the V-Shaped Recovery, Obama’s “Rosy Forecast”

“Abridged Version”

Things are bad. Things are going to stay bad for some time, years not months. The government’s forecasts of GDP, deficits, debt, employment will all be revised to the downside over the next year. This is a time to buckle down and to be realistic that a new, virtuous cycle of economic growth requires far lower total debt as a basis for credit expansion. Do not be fooled. Sure we may rally more this summer or fall, but there is another bloodbath in the making. Our political system seems fractured, career politicians manning the ship alongside the invisible hand of major financial institutions. Be smarter than your neighbor. This is the real deal, Evander.

No comments:

Post a Comment