"IF AMERICA'S ECONOMIC LANDSCAPE seems suddenly alien and hostile to many citizens, there is good reason: they have never seen anything like it. Nothing in memory has prepared consumers for such turbulent, epochal change, the sort of upheaval that happens once in 50 years. That may explain why so many voter polls, taken as the economy shudders toward the November election, reveal such ragged emotional edges, so much fear and misgiving. Even the economists do not have a name for the present condition, though one has described it as 'suspended animation' and 'never-never land.'
In a normal rebound, Americans would be witnessing a flurry of hiring, new investment and lending, and buoyant growth. But the U.S. economy remains almost comatose a full year and a half after the recession officially ended. Unemployment is still high; real wages are declining...The current slump already ranks as the longest period of sustained weakness since the Great Depression."
While the above could've been written today, it was actually published by Time in 1992. Although pessimism was abound during the times following the 1990-1991 recession, we all know what kind of boom the US experienced in the following years. And while we see similar pessimism among today's investors, we see a bright future ahead.
To read the full article, click here.
Mark Dodson, CFA