These two headlines tonight following the bank bailout and the auto bailout serve to validate my new view.  We are not going back to where we were.  Yet all activities of the governments’ to date are premised on the notion that after this hickup we will return to 1-2% annual growth in GDP reasonable interest rates, and increasing home prices. Who believes that now?  Where is the pragmatic thinking that plans for GDP at a fraction of what it was in 2007 ?  Where are the scenario plans for GDP at 75% and 50% of 2007 levels.  Such plans would … Continue reading Getting back to normal economic growth | we have it all wrong!