Deciphering The Shape Of The Economic Recovery

I flicked on the tube last night just as Simon Johnson and other economists were talking on the Lehrer Newshour (7th link on the blog) about possible economic recovery shapes. In other words, will the economy rise rapidly from its March bottom or will it float along the bottom, etc. One of the economists quoted was using his Ouija board and it definitely needed calibrated. He was channeling planet Mars.

I had no idea who Simon Johnson was until this crisis unfolded (former chief economist of the IMF) but he has earned my respect by being hypercritical of the corruption and cronyism in our economic policies and politics since. But at 6:50 of the video link Simon is asked about the possibility of an outcome which looks like the lightning bolt in the AC/DC Highway to Hell album made during the recession of 1979. In other words, collapse followed by apparent recovery and collapse again. (The infamous Elliott Wave ABC pattern) Simon laughs that possibility off as seemingly impossible. Really? That's exactly what is going to happen. Collapse followed by an introduction of substantial liquidity in the global market followed by another collapse.

Simon, you need to scream louder for economic reforms if you don't want to look back on that video with horror.