Bankers Told Recovery May Be Slow

Posted by Kendall Harmon

The American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and the economic turmoil that followed, according to an authority on the history of financial crises.

That finding, contained in a new paper by Carmen M. Reinhart, an economist at the University of Maryland, generated considerable debate during an annual policy symposium here, organized by the Federal Reserve Bank of Kansas City, which concluded on Saturday.

Read it all.

Filed under: * Culture-WatchHistory* Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeHousing/Real Estate MarketLabor/Labor Unions/Labor MarketPersonal FinanceThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--The U.S. GovernmentPolitics in General

4 Comments
Posted August 30, 2010 at 7:00 am [Printer Friendly] [Print w/ comments]



1. David Keller wrote:

This sounds like Jmmy Carter’s malaise speech.  What we need is someone to lead us out of this mess, not a bunch of whiners. Its still morning in America.  The American renaissance is just around the corner.  We just need inspiring leaders who know how to find the experts to deal with the problem. The real crisis is that the current leadership of this country believes the soultions can be found within the government; and they are woefully incorrect.

August 30, 9:02 am | [comment link]
2. AnglicanFirst wrote:

“The American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and the economic turmoil that followed, according to an authority on the history of financial crises.”

“[T]he 2007 collapse of the housing market” was the collapse of a politician-created and politician-tolerated ‘housing bubble.’

Some politicians in Congress bravely and futilely predicted the likely outcome of an unsustainable housing bubble and the financial market manipulation of ‘derivatives’ built upon ideologically promoted shaky loans to non-qualified borrowers ( as the real world sees qualified/non-qualified borrowers).

The ideologists in Congress were led by very well-known politicians, including Barney Franks in the House and Chris “Duh” Dodd in the Senate.  But these were not the only ideologists and among their motives was a desire to create from the reservoir of non-qualified borrowers a grateful cadre of voters who would vote solidly for Democrats who were ideologically in the left-wing of their party.

Its time for these “chickens to come home to roost” and for the Democrats to get rid of the left-wing ideologists who do not represent traditional Democratic thought.  As a matter of fact, a very good argument can be made that these left-wing ideologists are not Democrats at all but instead are people who over the past 30-40 years who have hijacked Democrat leadership positions.

So Democrats, its time for you to clean house.  And while you are at it, get rid of the excessive influence within your party of the narcissistic and damaging influence of the major labor unions.  That leadership doesn’t care a whit about the average working guy unless he is a member of one of their unions and is in the upper 20% seniority group of their union membership.  With the major unions, its all about power, raw power.

August 30, 9:52 am | [comment link]
3. palagious wrote:

Perhaps we could make some progress if we had national leadership that wasn’t virulently anti-business.

August 30, 12:33 pm | [comment link]
4. Sarah wrote:

RE: “The American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and the economic turmoil that followed, according to an authority on the history of financial crises.”

Ooh, let’s rewrite this to make a little more sense: The American economy could experience painfully slow growth and stubbornly high unemployment for a decade or longer as a result of the 2007 collapse of the housing market and the [massive increases in non-stimulus spending from the State and ill-conceived and expensive bailouts of companies that desperately needed to go bust , coupled by the State’s enormous increase in the cost of hiring and doing business forced on the private sector] that followed, according to an authority on the history of financial crises.”

There we go.

Much better.

August 30, 4:52 pm | [comment link]
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