Thursday, July 22, 2010

New way to say "new normal" from Robert Reich

Robert Reich turned a nice phrase when he said we are not in a double dip recession but a "one and a half dip" recession. You may not know it from the stock market and equity profitability, but the economy is not had a pop as expected from the Zarnowitz rule which states that a fast fall will be matched by a fast recovery.

Housing is an old story but it still convert to a sluggish economy. We know that liquefying housing wealth through home equity loans boosted the economy during the 2000's period. We are not getting a housing boost now. Wealth has been stabilized but not increased. The headwinds are significant, so we have the half dip.

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