US: May take years to get back to 2007 level of output...

yoganmahew · February 25, 2010, 9:21pm

So says the president of the Cleveland Fed…
calculatedriskblog.com/2010/ … o-get.html

From Cleveland Fed President Sandra Pianalto: When the Small Stuff Is Anything But Small. A few excerpts:

You know we have been through one of the most severe and longest recessions in our nation’s history. The recovery from the recession may also end up being one of the longest in our history. In fact, it may take years just to get back to the level of output we enjoyed in 2007, just before the economic crisis began.

Some of you may think I am being too pessimistic. After all, we saw a strong GDP growth estimate for the fourth quarter of last year--nearly 6 percent at an annual rate. But I think that figure overstates the underlying strength of our economy right now.

Hey, the small stuff matters?! Small stuff like jobs, hours and earnings! Who knew!