Economic hell, and then what?
Whatever the new administration does, we're in for months, perhaps even a year, of economic hell. After that, things should get better, as President Obama's stimulus plan -- OK, I'm told that the politically correct term is now "economic recovery plan" -- begins to gain traction. Late next year the economy should begin to stabilize, and I'm fairly optimistic about 2010.
But what comes after that?
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Krugman understates, omitting interruptions in intertwined global supply chains, lack of letters of credit for shipping, no venture capital for badly needed new technologies, and a new IEA admission that peak oil is here after all. Welcome to the Long Emergency.