Doug Mataconis held a B.A. in Political Science from Rutgers University and J.D. from George Mason University School of Law. He joined the staff of OTB in May 2010 and contributed a staggering 16,483 posts before his retirement in January 2020. He passed far too young in July 2021.
Can we stop touting a V-shaped recovery now? To the extent that there is a recovery, it’s a recovery in the financial sector and that’s only happening because the Fed is giving free money to the banks, i.e. when the banks can earn more by buying Treasury notes than it costs them to get it from the Fed, they’re getting free money.
Can we stop touting a V-shaped recovery now? To the extent that there is a recovery, it’s a recovery in the financial sector and that’s only happening because the Fed is giving free money to the banks, i.e. when the banks can earn more by buying Treasury notes than it costs them to get it from the Fed, they’re getting free money.
“L-shaped” was the one that surprised me and scared me. When an economist says “L-sharped recovery” that doesn’t seem like much of a recovery.
So, we are apparently L-shaped so far, but with some good news and some bad. This is a definite soft spot, but not a proven double-dip IMNSHO.
When I hear “L-shaped recovery”, I think permanent decline.
We may have to realize at some point that things aren’t going to return to where they were before.