Friday we wrote about this recession relative to others. The picture is not good especially when we look at an update of the downturn against other recessions. The chart from the NYT shows that we have exceeded the percentage of unemployment in severity.
The other severe recessions saw relative quick recoveries. The more shallow recessions saw slower recoveries. We are most likely seeing a combination of both severity and length given there is still a significant problem with the banking sector. Credit expansion has not been forthcoming at a rate that would suggest a recovery. The TALF program which starts this month will be a good boost, but will still take time.
Without an formal forecast, there is little to suggest that this will not be the worst recession since the Great Depression.
The other severe recessions saw relative quick recoveries. The more shallow recessions saw slower recoveries. We are most likely seeing a combination of both severity and length given there is still a significant problem with the banking sector. Credit expansion has not been forthcoming at a rate that would suggest a recovery. The TALF program which starts this month will be a good boost, but will still take time.
Without an formal forecast, there is little to suggest that this will not be the worst recession since the Great Depression.
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