Comments on: GDP: ECONOMISTS REACT http://pragcap.com/gdp-economists-react Fri, 25 May 2012 10:04:43 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Nick http://pragcap.com/gdp-economists-react/comment-page-1#comment-3975 Nick Sat, 01 Aug 2009 18:21:55 +0000 http://pragcap.com/?p=6997#comment-3975 I think a lot of people are expecting a robust economic recovery in the second half of this year. And that might be the reason why the stock market went up a lot and employers didn't fire as many employees as they could've fired. Many people have started preparing for a V-shaped economic recovery. And that might be the main reason why Q2 numbers don't look so bad. The government and the banks have managed to inspire some optimism and confidence in the economy. And that's the reason for the economic stabilization. But confidence in the future based on propaganda and accounting trickery can last only so long. The future is coming. And if doesn't turn out as well as many people expect. Then a downturn in the economy probably will be worse than it could've been without the false confidence. Because when people realize just how false their confidence was, then they usually loose all of their confidence and not just a part of it. I think a lot of people are expecting a robust economic recovery in the second half of this year. And that might be the reason why the stock market went up a lot and employers didn’t fire as many employees as they could’ve fired. Many people have started preparing for a V-shaped economic recovery. And that might be the main reason why Q2 numbers don’t look so bad.

The government and the banks have managed to inspire some optimism and confidence in the economy. And that’s the reason for the economic stabilization.

But confidence in the future based on propaganda and accounting trickery can last only so long. The future is coming. And if doesn’t turn out as well as many people expect. Then a downturn in the economy probably will be worse than it could’ve been without the false confidence. Because when people realize just how false their confidence was, then they usually loose all of their confidence and not just a part of it.

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