Wednesday, October 15, 2008

My day to send good reading your way--again on the economy

Someone should do it, eh? This one's also from WaPo, and while Pearlstein thinks the panic is over (if we're lucky), he predict the bear market will continue for some time. Click on over below.

Steven Pearlstein - Buckle Up -- We Haven't Reached Bottom Yet - "Do not confuse this moment of calm with a stock market bottom or a sign that a serious recession has been avoided."

Don't miss this section:
"Put another way, we didn't just have a housing bubble and a corporate takeover bubble and a consumer credit bubble and a commodities bubble. In time, those asset bubbles led to the creation of a bubble economy, with too many airplanes and restaurant seats and hotel rooms, too many office buildings and shopping centers, too many investment banks and media outlets dependent on advertising revenue from car companies producing too many cars and home builders producing too many houses. Shrinking all that back to the right size is what the coming recession is all about."

"Nobody really knows how long or how deep this recession will be. What we do know is that recessions that follow the collapse of asset bubbles tend to last longer than average -- and that this was the mother of all bubbles. So it's a fair assumption that this recession will last through 2009 and well into 2010. "

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