Friday, February 25, 2011

Depressed Growth Ahead
Joe El Rady

Conditions in US labor markets remain weak and will continue to stagnate, dashing hopes for a steep expansion following an already slow recovery characterized by barely sustainable escape velocity. No economist believes that the US can create jobs for the millions who will enter the job market over the next several years. Adding further weight to the already heavy burden, developed economies must reduce their debt levels. Deleveraging, however, will prove difficult given that the global economy remains plagued by the trade imbalances that helped to trigger the financial crisis.