What everyone is missing about the US economy
June 29, 2016
Since the beginning of the Global Financial Crisis/Great Recession, economists have been calling for a recovery each of the past eight years, but it never seems to arrive. The US economy has been okay, but not great. Automobile sales have recovered nicely, but we are still awaiting the non-existent housing recovery. Housing starts continue to stay well below pre-recessionary levels.
“History doesn't repeat itself but it often rhymes” – Mark Twain
What economists can't seem to figure out is that this is not the 1940s, 50s, 60s, 70s, 80s, 90s or early 2000s. In fact, today looks a lot more like the Great Depression of the 1930s. Economists and strategists love to reference previous time periods, with the most often quoted being the 1990s (anecdotally). We believe they are not going back far enough- you have to go all the way back to the Great Depression to find a truly similar time period.
The Great Depression and the Great Recession were not your typical recessions. In both cases, debt levels simply got too high, and the economy went through a deleveraging (to learn more about why, watch the video in our previous blog post). In fact, the US economy continues to deleverage, which is the main reason why growth has been lackluster.
To continue reading click here https://www.fortuityriskanalytics.com/blogs/news/what-everyone-is-missing-about-the-us-economy
Since the beginning of the Global Financial Crisis/Great Recession, economists have been calling for a recovery each of the past eight years, but it never seems to arrive. The US economy has been okay, but not great. Automobile sales have recovered nicely, but we are still awaiting the non-existent housing recovery. Housing starts continue to stay well below pre-recessionary levels.
“History doesn't repeat itself but it often rhymes” – Mark Twain
What economists can't seem to figure out is that this is not the 1940s, 50s, 60s, 70s, 80s, 90s or early 2000s. In fact, today looks a lot more like the Great Depression of the 1930s. Economists and strategists love to reference previous time periods, with the most often quoted being the 1990s (anecdotally). We believe they are not going back far enough- you have to go all the way back to the Great Depression to find a truly similar time period.
The Great Depression and the Great Recession were not your typical recessions. In both cases, debt levels simply got too high, and the economy went through a deleveraging (to learn more about why, watch the video in our previous blog post). In fact, the US economy continues to deleverage, which is the main reason why growth has been lackluster.
To continue reading click here https://www.fortuityriskanalytics.com/blogs/news/what-everyone-is-missing-about-the-us-economy
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