Photo: Council on Foreign Relations
The Council on Foreign Relations have put together a short presentation, 4 slides, on the weakness of the U.S. recovery.It centres on GDP, housing prices, household deleveraing, and nonfarm payrolls.
It’s blatantly obvious that what we’re dealing with is an abnormally weak recovery, brought on by a focus on deleveraging, rather than a return to consumer spending. That lack of consumer spending is a product of psychological matters, as well as a high unemployment rate.
Whether you think the problem is too much government spending or too little, these charts show that something has to change dramatically to kickstart this economy.
This is all about deleveraging, and as long as that lasts, the other statistics are unlikely to improve much.
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