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It's becoming tougher and tougher to prop things up



February 10, 2009 – Comments (2)

The fine folks at the Federal Reserve would like everyone to believe that they have the ability to make economic slowdowns magically disappear.  However, every time the Fed intervenes to prop up an ailing economy it seems to be less effective.  Looking at the above chart from The Big Picture, one can see that it is becoming tougher and tougher for the Fed to get us back to where we started.  The jobs recovery to the prior peak is taking longer and longer every single time we have a recession.

Anyone who believes that the economy will recover quickly from the current recession is sadly mistaken.  We are in for a long "L" or a very wide "U" shaped recovery, not a "V" shaped one.  This is why I continue to focus on stocks and bonds that pay me to ride this storm out.


2 Comments – Post Your Own

#1) On February 10, 2009 at 3:44 PM, GNUBEE (< 20) wrote:

Due to an increase in population size?

Population is almost double now to what it was in 1948?

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#2) On February 11, 2009 at 11:50 AM, skeptic86 (36.01) wrote:

not only population, but now women work.

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