Allissa Kline of Business First of Buffalo reports that:

Twelve months ago, a series of financial-sector failures catapulted an already troubled economy into a period of prolonged marketplace volatility.

Distressed banking giants that did not go bankrupt were swooped up by their peers. Insurance provider AIG received an $85 million bailout from the federal government, which later offered rescue funds to banks across the country. Real estate values plummeted and workplace layoffs left millions without jobs.

A year later, some local public companies and analysts say the mess is behind us – at least temporarily. They point to rising stock prices, businesses operating at full capacity and a general sense of security in the marketplace.

But the good feelings may not last long if severe inflation strikes the economy.

“I’m willing to bet that by the end of the fourth quarter, we will see economic data that says we’re out of the recession,” said Jeremy Beck, vice president and portfolio manager at Nottingham Advisors in Williamsville. “We’re closer to the end than not. But given the unprecedented amount of money we’ve created out of thin air, I think we’ll have significant inflationary pressures. A little inflation is a good thing, but a lot (of inflation) … could look like 1980-81, and nobody remembers that as a good time.”

Read more at: Business First of Buffalo