The Great Recession, which rolled over our financial lives like one of P.J. Keating’s giant pavers, is most likely over. Home sales, while still far below the levels of a year ago, have risen for three straight months—a first since 2004. The stock market has rallied 44 percent since March, thanks to renewed optimism and improving earnings from big companies like Goldman Sachs and Apple. In June, seven of the 10 indicators in the Conference Board Leading Economic Index pointed upward, including manufacturing hours worked and unemployment claims. Macroeconomic Advisers, the St. Louis–based consulting firm, says the economy is expanding at a 2.5 percent annual rate in the current quarter. Economic activity “will increase slightly over the remainder of 2009,” Federal Reserve chairman Ben Bernanke told Congress.
Irrational exuberance, it’s not. But even stagnation would be an improvement over recent history.