Are we there yet?

2010 July 11
by Dave

Are you curious about the state of our economic prospects after the past few weeks of market fun have caused you to question the narrative of booming recovery that many would have you believe? Well, bad news, the “D” word is showing up in print again.

Krugman has officially switched his gloomy forecasts from an expectation of a Japan style lost decade, to a USA circa 1874 long depression. Not as bad as the Great Depression, but a kick in the nuts never the less. I hope that he is wrong, but I’m not about to bet against him.

So say a prayer of thanks if you have a job. Start thinking about some serious lifestyle changes if you don’t. I honestly have no idea how you sit down and come up with a credible plan to cope with five or more years of unemployment without government support, but that doesn’t mean that you shouldn’t do it. If you are graduating from college soon, you might want to start thinking significantly outside the box. And in all these cases, you might consider holding cash for a while until a credible threat of inflation appears on the horizon again.

Woo Hoo!

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