2009: A year of Economic Hell

[jeffrey]

Whatever the new administration does, we’re in for months, perhaps even a year, of economic hell. After that, things should get better, as President Obama’s stimulus plan — O.K., I’m told that the politically correct term is now “economic recovery plan” — begins to gain traction. Late next year the economy should begin to stabilize, and I’m fairly optimistic about 2010.

But what comes after that? Right now everyone is talking about, say, two years of economic stimulus — which makes sense as a planning horizon. Too much of the economic commentary I’ve been reading seems to assume, however, that that’s really all we’ll need — that once a burst of deficit spending turns the economy around we can quickly go back to business as usual.

In fact, however, things can’t just go back to the way they were before the current crisis. And I hope the Obama people understand that...

http://www.nytimes.com/2008/12/22/op...gman.html?_r=1

[Gjowers]

I read this op-ed this morning. I would say that I agree that things just cannot go back to the way they were before. What we had before was a false economy created by irrational exhuberance and easy credit. For too long readily available credit substituted for decent wages. This is not sustainable and the recent economic turmoil seems to support that. As for the dire predictions for 2009, I don't know that it's going to be that bad or the recovery will take that long. I sure hope not.

[MoneyTrev]

I just hope Obama is a smart man and does have some kind of plan to ease the economic downturn. No one wanted it to happen but we caused it to happen and now we need a way to reverse the affects.

[irmanator]

really, i thought 2009 was going to be the good year -several of my obligations will be paid off...... yea then sh!t happens whenever i think i'm getting there so we will see......

[click4credit]

Although things would not be the way they were before, I think that 2009 would be a bit better than 2008. Now that we know what it feels like to have financial problems, I believe people would be more careful when it comes to their money.

[GREENBACK]

I've had this feeling for a little while now that the gov't(old one and the oncoming one) seems to believe we can go back to what we were. What we were was a fantasy and what we need is a new reality.