Meanwhile, the savings rate in the country, negative since 2000, by mid-2009 had popped back to a more normalized rate of 7% of disposable income and may head for 10%, which is the historic ceiling for this metric.
"At some point, this cycle ran out of steam (seemingly around $5500, for now), reaching a point at which sellers brought the supply and demand into balance, bringing the most recent price back to a new normalized level around $5000". Jon Pearlstone, publisher of the newsletter CryptoPatterns, also weighed in on the digital currency's price movements, focusing on technical analysis.
We ain't snapping back to sustainable normalized growth for the country so fast.
I do agree with the academics that the consumer hasn't the wherewithal to drive GDP back to its normalized rate of 3.5% to 4%.
It has the best risk-gain ratio if it gets back to normalized earning power in a couple of years, again my call.
In my model it takes a couple of years for worldwide GDP to get back to normalized growth of 4.5%.
To all this I say, let's get the country back to normalized growth with rising tax receipts, and then we can deal with the tax structure for corporations and the wealthy.
When you're selling something, expectations are building for it, and you're saying, "Well, it can't sustain itself at this level," that the business will again retreat back to normalized levels of earnings power for it.
You can build an earnings model for Exxon and GE with some predictability, but all you can hope for in Fannie and Citi is that someday soon they snap back to normalized rates of return on invested capital without more serious dilution after shoring up their equity base.
I've got the financial sector coming back to 50% of normalized earnings, but I could be too optimistic if I'm wrong on GDP's recovery and unemployment numbers shrinking.
