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The (False) Glimmer of Hope

Posted By Barry Ritholtz On April 23, 2009 @ 3:00 pm In Contrary Indicators,Economy,Psychology | Comments Disabled

Nice cover image from the Economist [1]on the brown shoots.

Excerpt:

“But, welcome as it is, optimism contains two traps, one obvious, the other more subtle. The obvious trap is that confidence proves misplaced—that the glimmers of hope are misinterpreted as the beginnings of a strong recovery when all they really show is that the rate of decline is slowing. The subtler trap, particularly for politicians, is that confidence and better news create ruinous complacency. Optimism is one thing, but hubris that the world economy is returning to normal could hinder recovery and block policies to protect against a further plunge into the depths.”

Here’s the cover image:

perils-of-optimism [1]

Hat tip Gary

>

Source:
A glimmer of hope? [1]
The worst thing for the world economy would be to assume the worst is over
Economist, April 23rd 2009

http://www.economist.com/opinion/displayStory.cfm?story_id=13527685&


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[1] Economist : http://www.economist.com/opinion/displayStory.cfm?story_id=13527685&

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