RE: [A-List] "The Late '90s Never Happened"

[sawicky@xxxxxxxxxx (Max Sawicky)]

An unemployment rate of 3.9 percent happened, with or without
hindsight.  Corporate earnings misstatements do not erase that
fact.

It makes sense that at some prior period, the process leading
up to a state of overproduction or excess capacity would have
generated tight labor markets and rising wages.

I think we could say you need a period of good times in order
for an economy to get into trouble.

mbs



As one economist pithily put it, "What it means is that with the benefit
of hindsight, the late `90s never happened."  Were one to take into
account the earnings of these same companies over the year or so since
the study was completed, as well as to adjust for the overstatements of
profits by many of them, the trajectory would likely appear
significantly worse. . . .