What do you think would happen if the ‘worst recession in 60 years’ turns out to be no recession at all?
I think nothing would happen.
The NYT crowd would say that everything was saved because government acted. The loonier people like Soros would say we are just buying time and that if we don’t do something (i.e. elect a Democrat) things will be even worse next time. Inflamed bloggers would just forget about it and would start posting the new research that Bush actually lied 2 trillion times about Iraq instead of the previously report 2.5 billion times.
Today the DOW gained 176 points. We are basically back at the level we were in April 2007.
At the end, it is really a waste of time to try to discuss this kind of super macro issue.