Americans will pay for ‘08 financial crisis with ‘lifetime income loss’

[KenH]

“The data suggests that the crisis, which nearly collapsed the U.S. banking system, has “persistently lowered output” by about 7 percentage points and, as a result, the earning power of all Americans will be reduced.

“This is a large number: In dollar terms, it represents a lifetime income loss in present-discounted value terms of about $70,000 for every American,” officials wrote.”

Americans will pay for ‘08 financial crisis with ‘lifetime income loss’

 

[Yeshua1]

“The data suggests that the crisis, which nearly collapsed the U.S. banking system, has “persistently lowered output” by about 7 percentage points and, as a result, the earning power of all Americans will be reduced.

“This is a large number: In dollar terms, it represents a lifetime income loss in present-discounted value terms of about $70,000 for every American,” officials wrote.”

Americans will pay for ‘08 financial crisis with ‘lifetime income loss’

I think the hundreds of billions of dollars lost trading between us and China and Eorope and Japanmuch wose to long term economy!

 

[InTheLight]

The Fed is throwing darts at the dartboard again.

From the article:
"Researchers also estimate that the U.S. economy won’t recover these large output losses and it may never again revert to previous growth rates."

2018: Q2 GDP growth rate: 4.1%

Previous growth rates in the ten years before 2008 that have exceeded 4.1%:
2006: Q1
2005: Q1
2003: Q3 and Q4
2000: Q2
1999: Q3 and Q4
Seven quarters in the period 1999-2008, ten years (seven out of forty quarters), that were better than the most recent GDP numbers.

Previous growth rates in the ten years since 2008 that have exceeded 4.1%:
2009: Q4
2011: Q4
2014: Q2 and Q3
Four quarter in the period 2009-2018, 9 1/2 years (four out of thirty-eight quarters), that were better than the most recent GDP numbers.

Ya know what? I don't want the growth rates we've had in the previous 20 years. To quote the article, I hope we "never again revert to previous growth rates."