Your Lying Eyes

Dedicated to uncovering the truth that stands naked before your lying eyes.

E-mail Me

Twitter: yourlyingeyes

22 May 2010

How's That Recovery Doing?

The recent correction in the markets probably have most people questioning the recovery. Unemployment claims shot up last week, which was not a surprise to me given all the layoff talk I've been hearing. But even if one doesn't believe we'll have a "double dip," how anyone can think we're going to grow our way out of trouble is beyond me.

The last recession we had like this was in the early 80's - I'll call that the Carter/Reagan recession. We certainly grew our way out of that one (but even today there is debate over whether the recovery was truly deep enough for the vast middle-class - I'll leave that debate aside). This one however features levels of debt unimaginable at that time - so we're going to need even stronger growth to get out of this mess. Here's a comparison of the two recessions - baselining each at the last quarter that showed growth before the decline in GDP set in:
Look like we have much of a chance to grow out of that nice hole we dug?


Blogger Dutch Boy said...

Back in the Great Depression recovery was always just around the corner and, in truth, there were a few periods in which the optimists seemed to be justified (until the economic fundamentals reasserted themselves). Now we've got Europe teetering on the edge of a meltdown and the usual suspects are still talking recovery. I'll pass on the optimism.

May 22, 2010 4:59 PM  

Post a Comment

<< Home