If you draw the tangents to the curves, you can see how the declines (and in a large degree the recoveries also) became less and less steep over time in each one of the 5 last recessions. The growing size of the US economy and the interconnections with the rest of the world may have played a role to damp down the crises (a corollary being that modern morasses might not be as deep as they used to but we stay in it longer).
Now I find it worrisome that the current recession is plunging as steeply as the steepest one from the 1970's, knowing that we (the US) are taking the rest of the world down with us and there isn't anybody else to cushion the fall. We might very well still be in it in 5 years from now. Or 10. Thank you, George Bush!
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If you draw the tangents to the curves, you can see how the declines (and in a large degree the recoveries also) became less and less steep over time in each one of the 5 last recessions. The growing size of the US economy and the interconnections with the rest of the world may have played a role to damp down the crises (a corollary being that modern morasses might not be as deep as they used to but we stay in it longer).
Now I find it worrisome that the current recession is plunging as steeply as the steepest one from the 1970's, knowing that we (the US) are taking the rest of the world down with us and there isn't anybody else to cushion the fall. We might very well still be in it in 5 years from now. Or 10. Thank you, George Bush!
Here is what we get if we extrapolate the charts with the latest forecasts (note: mildly nsfw)...
http://blog.photobiker.com/index.ph...