Wednesday, May 29, 2013

Recovery Summer

I think this piece is a bit over-optimistic overall, but the conclusion is a bit closer to the mark.
For the economy to continue growing even as the sequestration and tax increases have their full effects, higher housing prices will need to translate into more home construction, higher stock prices will need to translate into companies making new investments, and consumers’ higher level of confidence will need to translate into spending more money.

Until those things happen, there will not be the kind of full-throated economic boom that, four years since the great recession ended, America is still desperately waiting for.

The first one could happen, the second one is unlikely, and people can't spend what they don't have.