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No, Really?
Dec. 1st, 2008 01:19 pmThe national bureau of economic research has finally concluded that the US has been in a recession since December of last year.
(I want to end this post with a tongue-in-cheek dig at McCain that the fundamentals of the US economy are strong, except that that isn't entirely reasonable - many of the fundamentals are in reasonable shape, that just doesn't change the fact that both the economy as a whole and most of the individuals who make up that economy are dramatically over-leveraged, and we collectively need to pay down a bunch of that debt before we can afford to start living on borrowed money again. Which means that we've hit the organic end of this business cycle, and because we borrowed our way out of the last recession (by reducing interest rates significantly below the actual cost of money), we have less flexibility with which to reduce the impact of this one. Whee!)
(I want to end this post with a tongue-in-cheek dig at McCain that the fundamentals of the US economy are strong, except that that isn't entirely reasonable - many of the fundamentals are in reasonable shape, that just doesn't change the fact that both the economy as a whole and most of the individuals who make up that economy are dramatically over-leveraged, and we collectively need to pay down a bunch of that debt before we can afford to start living on borrowed money again. Which means that we've hit the organic end of this business cycle, and because we borrowed our way out of the last recession (by reducing interest rates significantly below the actual cost of money), we have less flexibility with which to reduce the impact of this one. Whee!)
