The progression of the economy has moved from a recession to a credit crisis to a financial panic back to a recession. The GDP numbers of last week encapsulate exactly where we're at: Q1 -6.4% and Q2 -1.0%. Due to the incredible sharp reduction in costs and inventories in Q1, earnings beat expectations by a historical amount and generated a massive up move in equities. It is truly a case of falling so far that everything looks up from here.
If you have to run your business by checking to see what Congress is doing everyday, it’s “virtually impossible,” CEO Jeff Lane.
“In the late summer of 2008, as Lehman Brothers teetered at the edge, a bell tolled for Wall Street,” so writes Roger Lowenstein in his book, "THE END OF WALL STREET." The bell may have sounded, in 2008, but for those who were really listening, there were warning signs of a financial crisis long before the summer of 2008.