A picture is worth a thousand words

There is a "good news" and "bad news" twist to this post. For the good news, our friend Brian Wesbury, Chief Economist at First Trust, has masterfully linked together a series of pictures that coincide beautifully with our belief that the "Panic of 2008" was just that -- a panic -- and that the recovery as things worked their way back to normal would be abrupt.

This gives us a great deal of confidence in the near- to intermediate-term outlook for the economy and markets.

Now for the bad news. We have long said that we weren't worried about government deficits in and of themselves, but worried more about the growth of the deficit and the percentage that the deficit represents of GDP. The picture is not so pretty in that respect:

We would echo the many calls we are hearing for an immediate abandonment of these massive "stimulus" packages and new government entitlement programs that are being sold as "saviors" of the economy. They are not needed and, in our opinion, will simply retard economic growth.

It is going to be very important to be on the right train going forward!

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For later posts dealing with this same topic, see also:

• "Dangerous media distractions" 07/07/2009.

• "If Rip Van Winkle took a one-year nap before September 15, 2008" 09/14/2009.

• "The Consumer" 10/19/2009.

• "Rip Van Winkle, 2010" 10/11/2010.