Atlantis Alumni

Tuesday, February 3, 2009

The Economy Will Reset, Not Recover

According to some pundits, the economy will not recover in the sense that we will return to stock market levels and other economic conditions that existed pre-last Fall. Instead, what we will see is the establishment of a new, lower level overall economy. This will mean a lower standard of living for most of us. The uber-wealthy are immune.

Think about the reset that happened when the Internet bubble burst almost ten years ago. The Nasdaq was at about 5,000 pre-burst. Well, it never recovered to that point in the years since. I don't think it even made it back to 2,000. A reset happened.

It may be that we're going to have to get used to a new set of economic realities that will not be pleasant for most of us.

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