That stock News

WASHINGTON - A growing economy 2% a year may be tolerable in normal time. Today, it is a disaster.

A growth rate of 5% or more is needed to put a major in the unemployment rate of 9.6% of the reasons pays.Deux tooth why is unlikely in the next year and maybe beyond:

Construction - residential and commercial - collapsed last year. And it is not expected to regain his strength for years.Normally, after the end of the recession, construction booms and feeds a new economic expansion.The recession that began in December 2007, after the bursting of the bubble, became the great depression, once the financial crisis that broke out in September 2008.Les economic recovery following a financial crisis usually are léthargiques.habituellement, banks take years to regain their loans normally.

"Really get"Morning in America"and get people feel like really, jobs are returning, I don't want something close to 5 per cent" annual economic growth, says economist Josh Bivens Institute of economic policy, referring to the Reagan's re-election iconic 1984 advertising.

History: The US economy is just hitting bottom

This is not likely to occur earlier. Macroeconomic advisers do expect the labour market to retrieve all lost jobs until at least 2013 RTI ' other economists say it might be 2018 or more.

Injured parties Life Inc.: contributions did not welcome GOP shoppers and target among Democrats. Index of adversity: economy crawling on the floor Life.: Economist says "no double-dip".

The Government said Friday that the gross domestic product in the country, the extent of goods and services produced, has increased at an annual rate of 2% from July to septembre.PIB has increased at an annual rate of 1.7% in the second quarter.

Economists say have the growth of GDP to 3% per year to maintain the rate of unemployment to rise more Americans reach working age and immigrants enter the country.2 Additional percentage growth one year points should be to reduce the unemployment rate of 1 point.

Further proof of a lukewarm economy emerged Monday, a day before the mid-term elections have pivoted on the financial health of the country.Americans spending slowed in September, and incomes have fallen. However, manufacturing activity increased by most of the first five mois.Et low construction industry showed a bit of life.

Recoveries of deep recessions are usually strong. When finally completed in 1981-82 recession, the economy stimulated in 1983 and 1984.Stretch, GDP grew at an annual rate of 8 percent or for the four quarters of straight .the most ' economy has generated 3.5 million jobs in 1983 and 1984 $ 3.9 million. The unemployment rate has fallen by one third in two years only, from 10.8% to 7.2%.

However, given the great crisis has officially ended in June 2009, the economy has lost a 439,000 net jobs. The unemployment rate was 9.5% in June dernier.Maintenant, it was 9.6%.

The recession in 1981-82 started in large part because the former Federal Reserve Chairman Paul Volcker raised short-term interest up to 20 per cent in 1980 to purge the inflation rate has two digits, restart economy. economic engine was simple: Volcker decrease rates in the short term of less than half a year.

Low rates had worked their magic and fired in the housing market.This created jobs for workers in the construction, expanded market of construction materials and stimulated demand for consumer appliances and furniture.Emboldened, businesses have borrowed, invested and hired.

But cutting interest rates is no longer an option.The financial crisis has been so severe in autumn 2008 as the Fed slashed rates in the short term to zero in December to prevent another depression.

Long-term rates declined sharply, too. today, consumers and businesses are unable or unwilling to take on debt, and many banks are reluctant to lend.Bank lending declined in five over the past six quarters.

And the housing market normally an engine of employment growth is still bouleversés.La National Association of Home Builders provides that manufacturers to implement 605,000 homes and apartments this year .c ' is more than 70% of the 2.1 million in 2005 at the top of the real estate.

"We cannot expect strong growth, but sometimes not," says economist Joel Naroff Economic Advisors Naroff. "A robust recovery was never possible because in the sectors of the housing and financial problems did not go to disappear from one day to the next.?

Slowed the weakness of the financial system recoveries of two previous recessions ainsi.La recession of 1990 - 1991 was caused by a tightening of credit that followed the collapse of industry loan and savings in Texas, commercial banks and New England resumed .the ensuing remains erratic in 1996.

A collapse of the stock market, caused by the bursting of the technology bubble has triggered a mild recession in 2001.Que recovery began even more slowly as the 2009-2010 .and version he did not replace lost jobs since four years.

The financial crisis of 2008 has been the most destructive of all contributing to explain why the economy remained so low since the end of the recession.

"These three recessions associated distress in financial markets, has preserved the traditional levers work, says the unconstitutional."

? 2010 The Associated rights Press.Tous réservés.Ce hardware cannot be published, broadcast, rewritten or redistributed.

View the original article here