The take-out message from this chart is the steeper a decline, the steeper a rise.

Contrary to what the bears keep saying to scare the retail investors, this chart actually strengthens the argument for a V-shaped recovery.

IMHO, the cultural shift is an economy built on leverage with a cheap energy component to it, you take one away you have problems, you take both, balance sheets and budgets are impaired………..the swan song of we need manufacturing, which is the highest energy usage of any pure business and tell me who will take the risk right now??? what will you budget for costs…..GM and detroit held on for 20 years with declining sales and rising costs, wherein the last ten there money was made on loans, until sales hit a bad patch and it was all over in one year, it just seems that that is an adequate path for local and national governments, verses addressing the core problems
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Obama and the Economists who have “his ear” say: “Manufacturing Jobs are Not Coming Back” …we need to Deal with this! (Full caps emphasis mine…but Obama said this in his “Jobs speech in PA…just this week.”

Others have said that “Productivity” means that we have robots and technology filling jobs that used to be done by the many and we need to “wake up and get over it that China is better at producing IMHO “Substandard cheap plastic goods (filled with Melamine/Dry Wall Fumes/Lead in our Kids and Adult Toys and all the rest of their slipshod goods which don’t meat even the minimal FDA standards for American Quality Products after Reagan!

You want SAFE GOODS? PRODUCTS THAT DON’T Catch on fire, poison you, your kids, your pets or your surgical, pharma or whatever when you undergo surgery in your hospital for “Knee, Ligament or Major Surgery…or go in for an Apendectomy, Colon, Heart or Thoracic, etc. …..you better hope it doesn’t have a component that came from CHINA which has no FDA of even the most primary kind…because China’s job is to Produce and to BYPASS any ENVIRONMENTAL OR FDA GUIDLINES of the most MINIMAL of US Standards.

Just remember what we get out of the Global Trade Off. And, remember that what we got in the bargain is what all those “slave workers” get when they go into Hospital. But the World’s Wealthy have their own special places where they get the “TOP GOODS.” They don’t have to get the kind of care the rest of us get…because they are SPECIAL.

As the third chart shows, most recessions have totally erased all job losses by now…we have not even turned up yet. I also see debt to income is still at unsustainable levels…the good news, it is now down to only about double where it should be.

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Your Post is Brief and “to the point.” I read it the same way. Short and Simple……WE ARE SCREWED for MANY YEARS….

WHy doesn’t anybody look at Household debt service to GDP???? The debt to GDP is incorrect. It is
like comparing a balance sheet to an income statement.

maybe because it created a lot of the GDP? and to actually get real GDP growth debt has to go down?

Gov’t did stress test on banks and knows which ones are likely in bad shape. Well, what if they know BAC is in dire straits and want the TARP money back. They wait a few months until after the stress test when everything seems okay as to not draw any attention and get the money back for TARP before BAC goes bust. It was some $45B lent to BAC right? That would be a lot of money for the gov’t to lose.