Another V Theory

Here is a new one on the V-shaped recovery that I heard (bloomberg):

Instead of a so-called New Normal of subdued growth, the U.S. may be heading for a robust recovery. The worst recession since the 1930s has created a reservoir of demand that will buoy the economy, say a growing number of economists led by James Glassman at JPMorgan Chase & Co., former Federal Reserve Governor Laurence Meyer and Stephen Stanley at RBS Securities Inc.

“Whenever we have plunged off a cliff and fallen into a deep hole in the past, for a while the economy has a tendency to bounce back very quickly,” said Glassman, a senior economist at JPMorgan in New York. Glassman and his colleagues this month
said forecasts of 3 percent to 4 percent growth in coming quarters may be too low given “pent-up” consumer demand.

It would be nice if "pent-up" demand would get you what you like. Kinda hard to buy stuff if you have no money. I am overall bearish longer term because I do not see where the money would come from. Basically US economy has been built on mirage of value creation and easy credit since about 1998. I don't see why anyone thinks things should go back to 2006 level.