Friday, March 27, 2009

Portland's Economic Malaise as Seen by The New York Times

Peter S. Goodman of The New York Times brings us this article about how the economic downturn is affecting Portland and he does a nice job tracing through some of the interconnections that characterize the economy.

I think he overstates the demand side, however, people can only withhold spending so much and for so long -  which is why the initial fall into recession can be quite steep, but recovery can too.   But for a recovery to be relatively quick and robust, we must have a well functioning credit market.  Hopefully Geithner's plan will pay quick dividends - I am skeptical, but am willing to give it a chance.

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