Whether it's another five years, ten years or even longer, working through the excesses of the bubble will not happen overnight. The Obama administration still believes the recession was a hiccup and that minor tweaking is needed to get the situation back on track. Our "change" president is so afraid of change he's implemented some minor adjustments, but nothing more. And then there's the GOP. How out of touch can they be when they believe that a return to the policies that triggered the recession will help solve the problem? Is it not possible to stick a fork into Reaganomics and start thinking about an economic plan that actually delivers economic prosperity beyond one or two percent of the population?
So what will it be? Bad or worse? Who really wants to hand the keys to the economy to either party?
It could be 10 years before economic growth in the United States and elsewhere returns to pre-recession norms and employment rates may never regain lost ground if past history is any guide, two prominent economists said in a paper presented on Friday.
Carmen Reinhart and Vincent Reinhart, in a paper presented at an annual conference hosted by the Federal Reserve, found that growth in gross domestic product is significantly lower during the decade after a severe financial crisis that is felt world-wide, as was the case with the recent meltdown.
