News That Doesn't Depress You: Economy Hitting Bottom Says Economist Alan Binder

Noted economist Alan Binder penned a piece for the Wall Street Journal where he argues that the economy has finally bottomed out and may even show surprising growth the remaining two quarters of the year.

Binder makes a fairly persuasive case, while acknowledging that job growth will be slow to return. "It will take years of strong growth to return to full employment," he writes.

The stock market's recent performance (i.e., the Dow crossed 9,000) is another indicator that things have bottomed. At the very least, the stock performance is a sign that the panic is over. People are no longer paralyzed, worrying about how bad it might get.

I found the national panic to be the most unsettling aspect of this recession and more than partly the result of irresponsible statements by our country's leaders. The panic made things much worse. If it has passed, it's a welcome sign that things may have indeed, bottomed out.

(c) 2009 Matt Michel