Bloomberg: Unemployment at 8 Percent Is the New Normal as Growth Slows

Posted by Kendall Harmon

“This is going to be a new era of frugality,” [David] Rosenberg said. “This isn’t some flashy two- or three-quarter deal. This is a secular change in household attitudes....”

The coming decade may, in some ways, remind people of those years during President Dwight D. Eisenhower’s administration, Rosenberg said.

“Life wasn’t so bad for the Cleavers,” he said, referring to the family depicted in “Leave It to Beaver,” the television show that ran from 1957 through 1963. “They weren’t up to their eyeballs in debt and they weren’t a three-car family with a 5,000-square-foot McMansion.”

Behavior by newly ascetic U.S. consumers, whose spending drives more than two-thirds of the economy, will translate into “less return to capital and less-remarkable equity returns,” said Milton Ezrati, senior economist at Jersey City, New Jersey- based Lord Abbett & Co., which manages $70 billion. “The whole picture is muted.”

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Filed under: * Culture-WatchHistory* Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifePersonal FinanceStock MarketThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--* International News & CommentaryAmerica/U.S.A.

Posted May 27, 2009 at 6:00 am [Printer Friendly] [Print w/ comments]
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