Why has this "recovery" been so mediocre, and perhaps even verging on ending?
In a speech given late last month in Sweden, Eric S. Rosengren of the Boston Fed took a deep look at the impact of housing weakness on the US economy.
Although everyone knows that housing has been a problem, the impact may be more stark than you realize.
For example, this chart shows: Growth in Real GDP Components: Current and Three Previous Recoveries
Note that outside of residential fixed investment (and also government, though to a much lesser degree) the recovery looks like a pretty normal one. Business Fixed Investment is actually a larger share of the recovery than previous ones have been.
Rosengren's presentation also looks at the impact of housing on wealth, including some breakdowns by ethnicity that we hadn't seen before.
Please follow Money Game on Twitter and Facebook.Follow Joe Weisenthal on Twitter.
Ask Joe A Question > x
To embed this post, copy the code below and paste into your website or blog.
View the original article here
This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.
No comments:
Post a Comment