From the learned MacDoctor comes what looks to me like more wisdom on this “the-recession-is-over” nonsense than you’d see in an idiocy of economists (“idiocy” is the collective noun for economists, right?):
“Economists are bouncing up and down with glee saying that the recession is over. I view all of this buoyancy with a great deal of skepticism, not it the least because few economists seemed to be able to predict the derivatives disaster that brought us to this pass. It would be nice if they are right, but the MacDoctor observes that the words “dead”, “cat” and “bounce” could be applicable here.
“One of the hallmarks of the depression was that people kept thinking it was all over – and then things took a turn for the worst again. I am no economist, as I have repeatedly said, but it does not seem to me that the amount of correction that has taken place so far is anywhere near as large as the amount of imbalance that needed to be corrected. This is purely a subjective gut feel, but this just feels like the eye of the storm brought to you courtesy of Obama-nomics, Gordo-splurge and Ruddistribution. . . “
Sound about dead right to me. And reminds me of a well-known cartoon from 1935 showing Prime Minister Forbes and Finance Minister Coates …
The letter for this quarter is ‘W’ – which describes the shape of the charts economists draw to show where things are going (and we’re only at the bottom of the first trough).
You see, despite what you’ve heard, it’s the recession itself in which recovery actually happens, or is supposed to – the time when losing propositions are reined in, the malinvestments liquidated, cost structures rationalised, and resources entrepreneurially redistributed to more profitable pastures.
But none of that can happen successfully when the Stimulunacy of Obama-nomics, Gordo-splurge and Ruddistribution has been doing all it can to stop it happening.