08 May 2009 The Good, The Bad, and The Ugly

Since the exaggerated stock market lows of early March, investors have been overjoyed by recent Good news that the trends in earnings, housing, jobs, and the economy may be slowing in their descent. They are glimmers of light in an otherwise dark reality. But this is a Bad Recession, the worst since the Great Depression, and it is unique in numerous ways. Finding remedies that don’t make matters worse poses hugely daunting challenges for government officials. And the Ugly truth is they have bent and even broken good faith promises, contracts, and even the Constitution in the name of remedy. The effects of these broken trusts, the exponential explosion of federal debt, and unprecedented spending on social programs that will not end after recovery will have major and unintended consequences on our future economy.