It Will Take Years To Really Recover From The Financial Crisis
America is stuck in a gray reality, which could last for years. It could take years until the recovery is really in place. The U.S. economy has the power to a huge increase, but unfortunately this increase will apparently not happen now. In Atlanta, the office building of Bank of America, the highest in the South, is almost half empty, in Cherry Hill, New Jersey, almost 10% of homes for sale are priced lower than those who want to sell due developers. Also in Arizona, it still speaks of reducing employment programs and job losses.
The New York Times, so you should not show recovery, and America is stuck in a gray reality, that could take years to undo. Also, the U.S. Federal Reserve in particular, is planning extreme measures to help the economic recovery.
Starting with the record number of bankruptcies of financial institutions, this recession is more severe than any downturn since the Great Depression of the ’30s and left a huge number of homes and office buildings without owners and a mountain of debt. Given the huge economic downturn, it could take years until a recovery is real.
Nine years to recover the lost jobs
A simple calculation leads to gloomy conclusions. Thus, if one takes into account the current pace of job creation, America would need nine years to regain the jobs lost during the recession.
If house price situation is not encouraging. The average price of homes has decreased by 20% in 2005 and the estimated inflation rate of 2% per year, shows it will take 13 years until house prices reach a level similar to that before the crisis, according to the explanations of L. Allen Sinai, chief economist at consulting firm Decision Economics.
It will take a decade to handle the additional retail space
Also, the employment rate is decreasing and business premises will have a decade to absorb the excesses of American cities. Demand is still low, consumer confidence is declining and many Americans fear that they could not get rid of debt. “No wonder that Americans are pessimistic and unhappy,” said Mark Zandi, chief economist at Moody’s Analytics, adding that now we have accepted this reality, this period of austerity.
After the collapse of financial markets in 2009, Robert Reich, former labor secretary in the department noted that the most profitable listed company generates about 40% of its revenue from abroad.
Newly emerging problems lead the U.S. into a new recession
In this context, there is only little doubt that the American economy would not be capable of strong growth, but most economists believe that this will not happen anytime soon.
“We still have a lot of power, starting with our entrepreneurial culture, labor market flexibility to attract immigrants, believes Barry Eichengreen, an economist at University of California, Berkeley.
The emergence of new issues could lead the U.S. into a new recession, or they could face deflation. “We’re in a situation where our vulnerability is very high,” said Carmen M. Reinhart, a professor of economics at the University of Maryland.11