Even a broken clock is right twice a day, but economists are almost always wrong when predicting the future. Confounded by the severity of the current recession, most economists continued to believe that better times were just around the corner. Last spring the experts at Credit Suisse First Boston said the economy appeared to be in a V-shaped cycle in which a “stomach-churning downturn” would be followed by a “rapid recovery.” The downside of that scenario has already come true.
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The economy is still strong and consumers are still spending. (Chicago Tribune, November 24, 2000)
John Keely of Chicago-based Keely Asset Management said he believes a severe bear market appears to be in the early stages of a recovery that could last as long as four years. (Chicago Tribune, January 1, 2001)
Analysts say the U.S. economy may be closer to hitting bottom of the sharp decline from the robust growth that prevailed during the boom years. (Chicago Tribune, April 4, 2001)
“I think we’ve hit bottom, and we’re coming back,” said Michael Kluiber, senior vice president for global automotive business at Rockwell Automation. (New York Times, July 3, 2001)
Federal Reserve Cuts Interest Rates (September 17, 2001)
