The world media are a fickle bunch. Only six months ago, there were apparently "green shoots" popping up across the economy as commentators stretched to find positive news. A few months later, and it appears that Ben Bernanke’s green shoots have wilted, only to be replaced by austerity and double dips.
To a contrarian, or an investor who values history, the notion of a stimulus-led recovery envisaged by the likes of Bernanke (and more locally by Kevin Rudd) was unlikely to be successful. This was because the great crisis of 2007-2009 was not a typical recession, but as Bill Bonner describes it, a Great Correction. The process was never able to be completed because politicians and business leaders never allowed the correction to actually occur, instead, they pumped the economy with money.