Thread: U.S. Economy Could Recover Sooner Than Expected

Well that would go against my predictions ... but guess what? I'd rather be WRONG and have the economy recover than be RIGHT!!!

Ditto MJ, there are basic economics that seem to be forgotten by most so called experts, at least that I've seen, but that's just my opinion

I'm in the wait and see camp right now.

I don't want to get my hopes up only to have it come crashing down again.

We are still working out the kinks, no doubt. I'm just happy to see some good news for once. I am still a bit of a wait and see guy, but on the more optimistic side.

Damn, this would mess up my business model!

it's a flip of the coin that will go either way. We are about to enter the unknown.... never before has so much money been injected into the economy via financial sector .

the devil's advocate says: what happens if the government's 1.3 trillion dollar "get out of jail free card" doesn't work? it will be ugly as soon as inflation starts driving debt payments higher.

I live by a mantra that short term solutions almost always fail.

I think the important thing that this "bail-out" is doing is providing the populous with some confidence in the system. If we allowed it to completely auto-correct, by itself, I would think that a lot of people would begin to stuff their mattresses. They would probably pull out all their money and then the economy would truly suffer. Considering globalization, it could have potentially decimated the economy beyond what could be easily repaired, and we'd be in real trouble. I think there is a time for true capitalism and free markets but, I also feel that there is a time when government spending and "bail-outs" are necessary.

From the article:

Among the reasons for the new optimism: a significant easing of the credit crunch, improvement in consumer spending—including better auto sales—a potential bottom in housing, a less-grim jobs picture and expectations that the government's massive stimulus spending could start boosting economic growth almost immediately.

I have read this recently in other sources as well. There were some recent economic indicators released such as an increase in retail sales, but still poor job numbers. The suggestion from the other source I read this from (can't remember where) was that the economy has either bottomed out or is approaching the bottom, which is a VERY reassuring sign. To me, knowing where the bottom is (especially if it is close) rather than not knowing how much further you have to fall is really great news for everyone.

I have noticed some optimism in the stock market, and my local malls have been MUCH busier recently. I feel that people are just tired of being afraid and are feeling more confident in the future prospects of our economy.

Great news!