Glass filling up?

FRONT PAGE: "Global Stock Rally Is Strongest Since 1991," by Joanna Slater and Neil Shah, Wall Street Journal, 1 May 2009.

COVER: "A glimmer of hope?" The Economist, 25 April-1 May 2009.

LEADERS: "A glimmer of hope? The worst thing for the world economy would be to assume the worst is over," The Economist, 25 April 2009.

Very funny cover art here: one of those hugely frightening deep-water fish that traps unsuspecting prey by dangling its glow antenna in front of its scary teeth.

Editorial makes the basic case for assuming the worst is over, and then says that would be the worst thing to do, because politicians would soon shirk from necessary duty, like America and Asia dealing with the huge and unsustainable structural imbalance that has united us greatly in the past (and financially today) but could prove a point of huge division in the future (Will China spend more? Will the U.S. spend less?).

Still, the good news is welcomed, and one hopes Obama is the sort of far-sighted leader he seems to be.

Comments

[William R. Cumming]

IMO the worst is not over. Look at 3 factors of interest! First actual unemployment numbers. When will we be growing jobs not losing them! Second, financing and refinancing of the entire commercial real estate sector! Availability of credit? Amounts and to whom or for what? Third, tax revenues, federal, state, and local! Finally what happens when OBAMA change is translated as NO REFORM of regulation of FIRE Sector, health, DOD programs, functions, and activities; and fith, no reform of policy in S. Asia or middle-east!

Okay and now the real killer when will FDI in US start back up? And how will foreign governments react to continued US fiancial weakness?

Time will tell I guess. Looks to me like the real timetable is going to run out on Obama first term by July 2010! Still no real traction on economic recovery IMO!

[Arsalan]

At this point, my main concern is about our international standing after the fallout. Will the U.S still be in a generally favorable position economically? I would love to hear/receive some specifics on that.

[joe Michels]

If I may comment on Arsalan's question.

The answer is yes, it we can keep the government from getting any more control of our free enterprise system. That looks impossible at this point in time.

If we decide that a hand full of people can run our economy better than MILLIONS of people working in it every day, then we will not be as powerful as is possible in a free market system.

The good news is that everything cycles and this too shall pass.