Official: this is second-worst recession in American history.
The economic recession that officially began in December 2007 is officially the second worst in American history since the end of the 1960s, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman.
he 1973-1975 recession ranks the worst in modem American history, and Dr. Linneman poses several ways to end the current recession before it deepens to levels unseen since then.
"Our analysis shows that the U.S. is in the midst of the second-worst recessionary period of the last 40 years, and it is worsening quickly," said Dr. Linneman.
"Our challenge in moving forward is going to be avoiding the temptation to save everyone--failing businesses, industries and underwater homeowners alike. Losers must lose if winners are to prosper, and the catalyst for a return to growth will be these necessary market adjustments."
The current recession is compared against significant recessions of the past 40 years, examining duration, changes in GDP, consumer confidence, inflation, unemployment and 10 other economic benchmarks. The recession of the early 1970s is atop the list as the "Worst Ever" U.S. Recession, followed by today's economic slowdown, and the 1981--1982 recession comes in third.
"Don't bet against the U.S. economy," said Linneman. "Entrepreneurs are still out there, and with a modicum of political leadership and stable economic policy, we will get through this stronger than ever--it will just take more time than we thought."
Dr. Linneman is also Professor of Real Estate, Finance and Public Policy at the Wharton School of Business.
EDITOR'S NOTE: In the March 16 report, Nervous condo buyers rethinking their plans, the address given for River Lofts was incorrect. River Lofts is located at 92 Laight Street and 416 Washington Street in Manhattan.
