False Confidence and the Coming Economic Storm
Interviewed on Charlie Rose, economics columnist and author Michael Lewis left no doubt that he believes a recovery is not imminent.
CHARLIE ROSE: And you think maybe more bad news is to come.
MICHAEL LEWIS: I do think that. I think that the scope of the losses has not been completely acknowledged by the government. I think that the approach that they’ve taken has been to sort of — it has been — you know, it works, up to a point. The Obama administration especially has been very good at creating false confidence, they have been very good at talking up the financial institutions, and it is true that.
There are many thoughtful analysts who believe as Lewis does. Investment firm T2 Partners (PDF) offers its opinion, based upon hard numbers, that the full credit and banking crisis has yet to arrive…