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A V-Shaped Recovery. I Want to Believe

October 20, 2008 RSS Feed Print

Sunshine Supermen Brian Wesbury and Bob Stein of First Trust Advisors offer a dose of economic optimism:

Rather than being the first of several negative quarters of economic growth, we expect this will be a temporary capitulation to the credit crunch, with almost all of the economic losses postponing economic activity into what will turn out to be a healthy period of growth in the second half of 2009. To be precise, we expect real GDP to be flat in Q1-2009, but then grow at an average annual rate of 3.0% in the final three quarters of next year.

The reason: This sharp drop in growth is due to a temporary drop in velocity due to a true credit crunch with some panic thrown in for good measure. It is not a typical recession caused by fundamental, economy-changing events such as higher tax rates, tighter money, protectionism, or other public policies that stifle innovation or entrepreneurship.

Tags:: economy,; economic growth

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Striking that this idea is being proposed once again. A vital idea that could make the difference in the recovery of a nation. This idea was presented by John Paradiso during his term as economic advisor to President Truman. The essential difference was the amount, he suggested 25K that would be repaid to the government at the age of 22 when the fund would have grown into a substantial and sustaining fund. Might someone have the courage to resubmit the idea.

James Schwerdt of CA 5:03PM October 26, 2008

My God, Don't you think you should ask the market? We will have congress and the exec. w/ democrats and you say +2000 pts? Wall street knows democrats raise taxes more. Higher taxes+more regulations+wall street=? Ask the business people. Ask Wall street!

calvin mast of CA 11:42PM October 20, 2008

The election of Obama and a bigger Dem majority in the Congress is the first step to economic recovery. And the stock market will be first to notice. Look for Obama to bump it 2000 points on the Dow. McCain?
If he's elected, look for a drop in sympathy with the long national funk we'll be in for years. Palin in charge? It will scare the whole darn world away from the dollar.

of 9:22PM October 20, 2008

A V-Shaped Recovery. I Want to Believe

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