December 21, 2019

IT'S NOT POSSIBLE TO OVERSTATE OUR DEBT TO W, BARRY & BEN:

An unexpected decade of prosperity (The Week, December 21, 2019)

Hold the champagne: Investors don't want this decade to end, said Lu Wang at Bloomberg Businessweek. "Stocks in the S&P 500 have returned 249 percent in the past 10 years." That's not just better than the historical average -- it's happened without the stomach-churning dips the stock market has delivered in other periods. Not every day was smooth sailing. "There was the May 2010 flash crash, Europe's sovereign debt crisis in 2011 and 2012, and China's currency devaluation in 2015." But ultimately the 2010s turned out be "the first decade without a bear market" -- the market never fell more than 20 percent from its peak. Even through a trade war and global recession jitters, "magically, the bull market has endured."

In the near term, economists believe that "the more than decade-old bull market still has room to run," said Martha White at NBC News. Many of the experts who in the spring predicted a recession for 2020 have changed their tune, and last month's robust jobs report has made economists much more optimistic. Most analysts now forecast one of three outcomes, said Paul Davidson at USA Today. 

There are inevitably parts of the response to the credit crisis they could have handled better--for instance, paying down consumer debt as the means of bailing out banks--but the fact that they turned what in the past would have beemn a depression into a minor recession followed by a return to the sustained growth begun by Reagan/Thatcher/Greenspan is a staggering achievement.     

Posted by at December 21, 2019 7:43 AM

  

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