def read2():
    expr = ""
    while expr != "quit":
        expr = raw_input("Lisp> ")
        print parse(expr)
        read2()
^^^^^^^^^^^^^^^^^
    print "Good session!"


You shouldn't call read2() inside read2()...
just remove that line and retry...

Each time you call read2() recursively, a
new expr is initialized to "", so the condition
never becomes true
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