Reinhart and Rogoff, "considering the huge and rising debt levels in the US, and the very limited extent to which deleveraging has taken place in the household and government sectors, we would be pretty happy to see a few straight years of trend growth, even if its falls short of the V-shaped recovery that some see around the corner."
- Bloomberg story
The economics of delevering are not easy to shake. It is amazing that there is such excitement about the recovery when we are still below trend growth. It is unlikely that growth will rise until there is further improvement of consumer balance sheets.
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