Edward Harrison of Credit Writedowns has a lengthy post on Naked Capitalism entitled The recession is over but the depression has just begun. Basically, Harrison has concluded that despite the fact that the national government now remains the only entity that can "pick up the slack" in generating demand to get the economy moving forward, "large scale government deficit spending is politically impossible." Hence, welcome to America's new Lost Decade.

What does this mean for the U.S. and global economies? Harrison offers a few points; one thing he foresees, and seems frightened of, is "a wave of populist sentiment, leading to an unpredictable and violent geopolitical climate and the likelihood of more muscular forms of government."

Me, I can hardly wait. 82nd Airborne to the Caymans, anyone? As a small, umm, escort, for Special Prosecutor Elliot Spitzer and a few hundred financial investigators.