The Simple Reason for the Long Downturn

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The Simple Reason for the Long Downturn

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2013 Sep 17, 3:15am 1,705 views 2 comments

http://www.huffingtonpost.com/dean-baker/the-simple-reason-for-the_b_3938762.html?source=Patrick.net

Many economists and business writers view the duration and severity of the downturn as being a mystery. They argue that it has something to do with the financial crisis, although the exact nature of the relationship is often not quite clear, with the financial crisis looming as a dark cloud hanging over the head of an otherwise healthy economy. Fortunately, for arithmetic fans the story was never very difficult. In the last business cycle the economy was being driven in large part by a housing bubble. The unprecedented run-up in nationwide house prices lead to booms in both residential construction...

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varmint 2013 Sep 17, 3:18am

Too many people lived outside their means for too long. People can't spend more than they make and more than the country produces indefinitely.

2 exfatguy 2013 Sep 17, 3:23am

U.S. real estate is global now. We may not have money, but the rest of the world does.

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The Simple Reason for the Long Downturn

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