Officially out of the Recession?
Check out the following article from The Economist and the accompanying commentary by Economics Finance blog contributor Jonas Grazulis.
“We are officially out of the recession.” This is what I heard from a fellow student last week, after many news stories spread regarding the subject. Are we really out of the woods already? Does a very marginal consistent job growth really constitute a recovery? And are the American people once more confident in the strength of this nation?
The following article from The Economist provides some of the answers. Although we may be “officially out of the recession,” the economic growth is slow compared to previous post-crisis recovery periods in the United States. The consumer confidence is shaken, and not many are willing or able to borrow in order to consume more. The financial sector, with many large firms still unsure of their total mortgage exposure in the current environment, remains rather shaky in the eyes of investors. Many international funds seem to be flowing toward emerging markets and fueling foreign growth, which may have greater potential returns for investors today. So, is the economy bouncing back to where it was, or are we looking at a multi-year grueling process?
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