Economists Warn Of Tough Decade

economyThe economists at the American Economic Association, or any economists for that matter, rarely come to a consensus on anything but had no problem doing just that as they concluded that the chances of the United States economy growing in 2010 aren’t good.

In fact, many of the economists who attended the group’s annual convention also believe that the next decade would not be particularly fruitful as the group suggested that the economy will grow less than two percent over the next 10 years.

Former chief of the National Bureau of Economic Research Martin Feldstein simply offered that “It will be difficult to have a robust recovery while housing and commercial real estate are depressed.”

This is not surprising when you consider that the average price of a home dropped 30 percent over the past five years and foreclosures have destroyed economies in states like California, Nevada, and Michigan.

Another problem that experts foresaw staggering the recovery process is the massive amount of debt that Americans are in. Although not as high as it was at the beginning of the economic crash, American families still owe a total of $2.5 trillion in consumer debt alone.

And the banks that created this whole mess? Economists largely agree that if the government should stop propping up the massive financial institutions with the programs that the Federal Reserve and Department of Treasury have going on, another collapse was likely to happen because the no-interest loans that the government gave the banks is the only thing that makes the banks look like they are bringing in a profit.

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