America Lost Decade
June 9, 2011 by USA Post
America Lost Decade, America may be facing its own “lost decade”, to reflect that plagued Japan in the late 1990, according to CNN Money. After a real estate bust in the early years of the decade, Japan entered a prolonged period of economic stagnation that lasted more than ten years and saw the entry and exit of the leaders of many governments tried unsuccessfully to resolve the problem.
America is showing signs of the same types of problems due to the large amount of debt held by the staff, CNN Money writes. At the time of the housing bubble that led to the recession, companies and individuals earned too much debt.
In early 2008 the U.S. total debt of the private sector peaked at 283% of gross domestic product-almost three times the size of the economy as a whole. While the recession has caused some to pay their debt and that figure has since fallen to 234%, the current debt is still well above the national average household income available.
“At least homes are being prudent and rational and reducing debt down. But I worry that we will be stabilized higher than I think it should,” said David Wyss, visiting professor at Brown University and former chief economist Standard & Poor’s.
“I think we’re in a lot of disappointment,” said Carmen Reinhart, senior fellow at the Peterson Institute for International Economics. “If historical standards expected, deleveraging is not pretty, and is not an easy process. We’re now four years into this. I do not think the next six years are very good.”
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