The recession is not over for the long term. Saying the recession is over is more like saying “Mission Accomplished” before the real Iraq War even began. It’s hiding from the underlying problems that have been created by thinking we can cheerlead our way through it.
It’s not over until the fat lady sings, and the fat lady is the dollar and its evil twin, the government debt bubble. More than any time since I was born, the United States is in denial of the truth.
And, it was Faith Popcorn who wrote a few years ago about “cocooning,” and then “burrowing.” Here’s the modern version of that, again from Aftershock:
A slowdown in the Discretionary Spending Sector will harm many businesses in the restaurant, retail, and home improvement industries. The travel industry will take an even greater hit. Leisure travel will be especially hard hit. Travel to major entertainment destinations, such as Orlando and Las Vegas, will be seriously stalled while more Americans go someplace closer and cheaper – like into their living rooms to watch TV.
And, this is worth noting, describing the way different generations have responded to challenge, again from the book:
In World War II, over half of Congress volunteered for the war. In World War I, Charlie Merrill, the founder of Merrill Lynch, was so interested in volunteering for the war that he drove down from New York to Fort Myers in Washington to speed up his enlistment process. In the Iraq War, there were so many Titans of Wall Street volunteering that they had to set up a separate sign-up window at the Pentagon! (Not really.)