It is going to be years!

Second quarter GDP is going to be negative, third one in a row.  Total contraction so far is about 7.5%, 3% in Q4, 3% in Q1 2009 and I expect a decline %1.5 to 2.0% decline in Q2 2009.  As the economy contracts from its leverage induced levels to one that is sustainable over the long-term (my opinion would be about 20% less than peak GDP) we are faced with a choice.  We can have high levels of unemployment or much lower incomes. 

More economic contraction is in the future which will translate into lower earnings, lower stock prices and rising prices of global commodities. 
Posted by Bradley Fluetsch at 7/13/2009 2:37 PM
Categories: Economics
Tags: standard hours value inflation living jobs deflation GDP decline currency
 

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