Saturday, August 15, 2009

Are Economists Too Cautious ?



According to Rebecca Wilder (News N Economics) economists currently forecast a “pathethic recovery” (July 21, 2009). But this is usually what they do writes Angry Bear’s Spencer:


“they have a long and repeated history of underestimating the strength of the recovery”.


Rebecca then looked for data and came out with the above graph.


Despite a general consensus that the exit from the current recession will be L-shaped (if not W-shaped) some pleasant surprises still are a possibility.

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