No Sign of Economic Recovery

In a recent posting, I said that the financial panic has subsided, but that the housing market is unlikely to recover soon. Paul Krugman made a similar point last week, about the broader economy. I won't reproduce his comments here, but I will borrow his chart (which he borrowed from Goldman Sachs, in any case).

Together, the four series included in the chart represent a sizable portion of overall economic activity. They all fell significantly during 2008, and they've all been flat since the beginning of 2009. Economic activity remains at depressed levels, with few signs of improvement.