The thing that I am hearing again and again is how fast the economy is slowing, and how quickly the labor market is deteriorating (even though this qualitative evidence is not perfect, it is something). President-Elect Obama takes office in sixteen days, and very soon after a stimulus package will be signed into law. But based on what I am hearing, I am truly worried about the prospects because of TIME. First, sixteen days is a long time so Governors better have their infrastructure personelle hired and in place. Second, much of the spending effects will not be felt until June, July, August, or September.
I truly hope credit markets gain confidence soon, or we could be in for a rough few months. The next five months could be the difference between three percent decline in GDP and a six pecent decline in GDP.
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