Folks I respect, like Krugman, DeLong and Roubini, seem to thing the worst will be over in two years. The Dow will stabilize at 6000, real estate will limp along at a permanent 50% of bubble prices for 20 years or so. I am not so optimistic. There are too many built in dangers. from the terrifying amount of consumer debt to the national debt to the balance of payments, we are on a knife edge. Obama cannot save us from this, even with majorities in both houses and a liberal Supreme Court. What's done is done and the happy boys of Wall Street have have buggered us yet another time. There is a VERY serious possibility we are looking at over 20% unemployment lasting for over 5 years.Can anyone imagine what this is like? I lived through the thirties, so I can.
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