The economic recovery map pushed by most forecasters is probably a bit rosier than it should be but certainly a more realistic view than those who point to the inevitable path to economic destruction. The most bearish have impressive examples of ailings; real estate losses of five to seven trillion dollars, retirement and savings losses of close to 10 trillion dollars, and staggering losses around the globe virtually mirroring the U.S. disaster. Issuance of corporate bonds at an ever growing pace at extended maturities suggests more hunkering and less spending as such debt instruments reveal the pursuit of returns pointed towards savings rather than investing in growth.
The bulls exhibit some of the same mindless tendencies which has always been apart of the efficient market crap. And when all else fails, they always will have China saving us all of by providing market opportunities through a notion of a rapidly growing totalitarian state immune from severe downturns and social upheaval.
The love hate by conservative thinkers over the pledge of over 10 trillion dollars by the G to remedy financial disaster is entertaining when viewing swings in the underlying markets from which the have become glued. Since the recovery in March, they have almost claimed the whole economic collapse was just a bump in the road to greater market performance. Of course they will be the first to cry and extend their hands should another rout appear.
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