Will it be a V, U, L, W, or a D?
As interesting article in the WSJ from David Wessel. Excerpts: The U.S. led the world into the abyss, and it will lead the world economy out of it. But how fast and when? The alphabet can help to imagine the possibilities and the path of the economy. There's the letter V: the kind of quick rebound that usually follows a deep recession. Or U: a longer recession and slow recovery. There is L: years of painfully slow growth (a long slog). And W: a temporary upturn as the economy feels the jolt of fiscal stimulus that quickly wears off. Finally, there's the big D, not the shape but another Great Depression. Here's the last sentence of the article, after he discussed numerous surveys of forecasters: The odds favor a long slog.


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