How important is rebuilding confidence?
Rogers: You look at the negative news like layoffs, and I think that will continue. On the psychology front, I read that 75% of Americans think Obama can improve growth in the economy. If people believe that, we will see some follow-through on that. If confidence improves, that will be what leads us to a better investment environment. Chung: At some point, the market is going to understand that, while things are bad and maybe getting worse, the rate of decline will slow. People will see that there is reason to be optimistic. Johnson: You’re going to get a stimulus package implemented quickly. States with shovel-ready projects will start to hire people. Perhaps as early as spring, you might see better job numbers. That may stabilize confidence. Lee: What is very different about this situation is it is the first time we have entered a recession where households are net debtors. Households always had more cash, stocks and bonds than mortgages or consumer credit. Housing is the centerpiece
