Recent times have witnessed great euphoria that we are at the end of what has been called the 'Great Recession' after a period of 20 years of 'Great Moderation'. Apparently with so may prefix's 'Great' we thought it may be a good idea to provide graphical illustration of how the present 'recovery' compares with that of the past recoveries. By recovery, we mean that we comparing periods when the economy (in this case the US Economy) compares when coming out of past recessions.
This is meant to be a series that will provide some graphical evidence about the nature of the present recovery. We belive that if there is any recovery it will be more statisticial than anything else and that in turn would have been enabled by the governmental efforts rather than private business investments.
The chart below provides a representation of the Michigan consumer sentiment since 1975 to July 2009. Note the points where the sentiment was in the shaded areas (which are the periods of recession). It is only then that we tend to get a greater idea about how it actually is in historical perspective going back decades.
Compare the sentiment at the end of the recession of 2001-2. A glance at the index at the end of the recession in 1990, when it was close to about 90 gives an indication of why the 'green shoots' may actually become brown dust.
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