Because they are labouring to pay down debts, consumption is and will remain depressed, and that must inevitably constrain growth.Deleveraging is a problem.
This, in turn, will mean depressed returns for investors.
And current projections, like those of the Federal Reserve, suggest that the economy will remain depressed at least through 2014.
Since the prices of homes still have a long way to fall, housing investment will remain depressed.
That means household incomes will remain depressed and consumer spending, which accounts for 70percentt of the economy, will continue to slump.
However, some industry experts believe that premium fares, which have been slashed in a bid to shore up demand, will remain depressed because companies will keep their travelling expenses under close review.
Foxtons, the London-focused estate agent, issued a profit warning in the wake of the EU poll as it predicted that the capital's property market will remain depressed for the rest of the year.
They may become demoralised, a few will become depressed and too many of the young may turn delinquent.The morning afterFor everyone else the new normal will be less bleak.
Consumption may be growing again, but there is every chance it will remain depressed in coming years because of weak income growth, depleted wealth and tightened credit.Since the early 1980s, spending by households on goods, services and homes has grown faster than GDP, making it the locomotive of American and global expansion.
Electric power demand will remain depressed for several years, so stay away from power producers.
