Boom Times Are Here Again
An email conversation about the news of the day.
March 13 2002 10:57 AM


The surest sign that life is back to pre-Sept.-11 normalcy is that the New York real estate market is booming again (reports today's Times). The rest of the country probably doesn't believe how much time New Yorkers spend talking about real estate, so I thought it would be deceptive to not get it into this discussion. You pointed out yesterday that the city's GDP declined 4 percent last year. It suffered the worst terrorist attack in history. The stock market has declined for almost two years and the financial industry is hurting. City employees are being laid off. But condo prices in Tribeca are back up again. What's going on? And should we get in on the action?


I don't understand this economy. After the longest boom in history, a huge stock market bubble, massive corporate and personal over-borrowing, a recession begins that is followed by the 9/11 attacks and the recession ends! In fact the new figures suggest that the economy may never have gone into recession at all. Is this for real? If it is the prelude to a "double dip" then it weirdly makes more sense. If this is it and we're back on the path of growth then economists have to go back to the drawing board again. (Economic predictions of growth for the last decade have been spectacularly off base.) Are we moving toward an economy that responds so fast to shifts in demand that the business cycle has been softened, even eliminated? You have to marvel at the American economy. Its size, diversity, flexibility are just extraordinary.

Anyway, I have to run to a breakfast meeting. When I get back I will present my own Middle East peace plan.

Fareed Zakaria is editor of Newsweek International and the author of The Future of Freedom: Illiberal Democracy at Home and Abroad.


Medical Examiner

The Most Terrifying Thing About Ebola 

The disease threatens humanity by preying on humanity.

I Bought the Huge iPhone. I’m Already Thinking of Returning It.

Scotland Is Just the Beginning. Expect More Political Earthquakes in Europe.

Students Aren’t Going to College Football Games as Much Anymore

And schools are getting worried.

Two Damn Good, Very Different Movies About Soldiers Returning From War

The XX Factor

Lifetime Didn’t Think the Steubenville Rape Case Was Dramatic Enough

So they added a little self-immolation.


Blacks Don’t Have a Corporal Punishment Problem

Americans do. But when blacks exhibit the same behaviors as others, it becomes part of a greater black pathology. 

Why a Sketch of Chelsea Manning Is Stirring Up Controversy

How Worried Should Poland, the Baltic States, and Georgia Be About a Russian Invasion?

Trending News Channel
Sept. 19 2014 1:11 PM Watch Flashes of Lightning Created in a Lab  
  News & Politics
Sept. 20 2014 11:13 AM -30-
Business Insider
Sept. 20 2014 6:30 AM The Man Making Bill Gates Richer
Sept. 20 2014 7:27 AM How Do Plants Grow Aboard the International Space Station?
  Double X
The XX Factor
Sept. 19 2014 11:33 AM Planned Parenthood Is About to Make It a Lot Easier to Get Birth Control
  Slate Plus
Slate Picks
Sept. 19 2014 12:00 PM What Happened at Slate This Week? The Slatest editor tells us to read well-informed skepticism, media criticism, and more.
Brow Beat
Sept. 20 2014 3:21 PM “The More You Know (About Black People)” Uses Very Funny PSAs to Condemn Black Stereotypes
Future Tense
Sept. 19 2014 5:03 PM White House Chief Information Officer Will Run U.S. Ebola Response
  Health & Science
Bad Astronomy
Sept. 20 2014 7:00 AM The Shaggy Sun
Sports Nut
Sept. 18 2014 11:42 AM Grandmaster Clash One of the most amazing feats in chess history just happened, and no one noticed.