Post-crisis politics: The line from 9/11 to Lehman to Syria

Posted: September 11, 2013 in economy
Tags: , ,

THE two most convulsive days in my career as an economics journalist came on September 11th 2001 and at the depth of the financial panic in mid-October 2008, a month after the failure of Lehman Brothers.Despite their different origins, both events brought about similar feelings: fear and the conviction that the world had changed forever. I remember going home late those nights on a half-empty subway, looking at my fellow passengers and wondering how many of them realised, as I did, that our livelihoods would feel the upheaval of the day’s events for years to come.I was only half right. While 9/11 had lasting humanitarian and strategic consequences, the economic impact was remarkably transient. We now know a recession, brought on by the dotcom bust, was underway when 9/11 happened, but two months later it ended. Though the recovery was halting, unemployment was almost back to normal levels by the third anniversary of the terrorist attacks. We spend more time boarding airplanes and entering government buildings, but all in all 9/11 has left remarkably little imprint on the economy.By contrast, the 2008 crisis has had much longer-lasting reverberations than I expected. After Congress approved the TARP bail-out programme, the economy spiraled down for eight more months. Four years into the recovery, unemployment is nowhere near normal.International experience suggests I should …

via Economic Crisis http://www.economist.com/blogs/freeexchange/2013/09/post-crisis-politics?fsrc=rss

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