As we see the stimulus start to kick in at a greater pace and the people who are still doing OK in the current economy start to feel that they are not in danger of falling off the cliff, we are seeing the start of economic growth.
This is just the start and as the growth continues it will start to build momentum. There is still a lot of skepticism about what happens after the stimulus runs its course, but much like a person who uses crutches to support a broken leg until he can walk again, the stimulus will start enough momentum to enable the economy to walk on its own.
As we start to see some increase in employment and housing prices, whether due to the stimulus or some other factor, it will feed upon itself much like the downward spiral fed upon itself.
If we somehow have a major disruption, this may change, but barring that it is clear that we have started the upswing and the next few months will be very interesting.
No comments:
Post a Comment