RECESSIONS HAVE THE USUAL KNOWN CONSEQUENCES...BUT THERE ARE NASTY KNOCK ON EFFECTS THAT ARE NOT PLANNED FOR AT THE START...
FOR EXAMPLE, THE DECLINE IN TAX REVENUES...AT THE FEDERAL AND STATE AND LOCAL LEVELS... THIS CAN FEED ON ITSELF...CAUSING FURTHER DOWNSIDE RISK...
MY HUNCH IS THAT THE PUNDITS ARE BEING WAY TO OPTIMISTIC ABOUT THE "END" OF THIS RECESSION/DEPRESSION....
THIS IS JUST TOO SIMPLISTIC...AND TOO EASY TO BE REAL.
THE NEGATIVE FEEDBACK LOOPS HAVE NOT EVEN STARTED YET...AND ALREADY VICTORY IS BEING DECLARED...!
AMERICANS ARE TOO WILLING TO SAY:
MISSION ACCOMPLISHED!
