And Now Comes The Cool Part Of The Economy...
Nobody is going to deny that post-crisis recovery has been disappointingly slow by almost any measure.
But it might not have to stay that way.
Investors and analyst Conor Sen has a great piece up on his blog about the handoff from "recovery" to "growth."
"Recovery" is essentially just a period of re-utilizing the assets that went dormant during the downturn.
"Growth" is the period of building brand new assets.
And there are signs that's happening now.
One bullish sign is that in recent months there's been a major acceleration in loan growth at commercial banks.
FRED
Another exciting trend is the upturn in wages, which speaks to rising pressure on the existing work force and perhaps the need to kick hiring into higher gear.
FRED
Meanwhile, as Conor notes, private residential and non-residential fixed investment remain at shares of the economy that are associated with extreme downturns.
FRED
Loan growth is picking up. Wages are rising. And investment remains extremely depressed. The recipe for the kind of real Growth people have been yearning for may be here.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- From terrace to table: 8 Edible plants you can grow in your home
- India fourth largest military spender globally in 2023: SIPRI report
- New study forecasts high chance of record-breaking heat and humidity in India in the coming months
- Gold plunges ₹1,450 to ₹72,200, silver prices dive by ₹2,300
- Strong domestic demand supporting India's growth: Morgan Stanley