PeakTrader.com

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PeakTrader said...

If we had a V-shaped recovery, this would no longer be called the "Great Recession."

It has been a recoverless recovery, because GDP is back to the 2007 level (excluding population growth).

It seems, Obama's "expansionary" fiscal policy offset the Fed's quantitative easing.

We've been burning trillions of dollars spinning our wheels as fast as possible with little or no progress.

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Dr. T said...

Once again, the numbers need to be adjusted for population changes. GDP per person is more relevant than total GDP. The population of the USA increased by 4.4% from 2005 to 2010. Therefore, the GDP per person at the end of 2010 was 4.3% less than it was in 2005.

Our economy is improving, but we aren't even close to a full recovery.

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PeakTrader said...

When you lose 50%, you need to gain 100% for a full recovery.

That's why the Reagan V-shaped recovery had 7% to 9% real growth over five consecutive quarters.

This recovery has taken place at one-third speed, and much of that was from population growth.

We've averaged zero percent real growth over the past three years.

If we get 4% real growth in 2011, the four year average will be 1%.