Robert Reich (and Goldwater's Ghost) think we're headed for a "double dip" recession. I disagree. I think we're simply a year into a three to five year stretch of little or no growth. Certain indicators in the economy will rise and fall, and there will be a concomitant rise or fall in the markets. But by and large, the Dow will hover between largely between 10K and 11K for the foreseeable future--and THAT'S OK. We don't NEED to do any more monkeying around with things. We need to let the toxins work their way out of the system. We need to allow the housing inventory to decline slowly, over time. We need to allow the real signs of increased productivity in the productive side of our economy continue--even as government seeks to support that productivity with enlightened policy decisions (not what we're seeing today). We need to get used to high unemployment and low growth while we work to shore up the fundamentals of the economy. We need to cut spending and move to more rational revenue models.
What we don't need is more stimulus. What we don't need is more debt. What we do need it to take some of the medicine we are so freely prescribing to Greece.