Did the financial crisis end in March 2009, when the U.S. stock market bottomed from the carnage of the collapse; in April 2013, when Wall Street recouped its losses from the crisis; or in June 2009, when a return to economic growth put an end to the recession that arose from the collapse? None of the above. The crisis is just now ending.
That's according to Torsten Sløk, the chief international economist at Deutsche Bank Securities, who illustrated that unconventional view with the following chart of U.S. GDP data:
"The latest GDP data shows that the US economy is now operating at full capacity as estimated by the Congressional Budget Office," wrote Sløk. "In other words, the crisis is officially over, and economic activity is at a level where it would have been if we had not had a financial crisis."
In the latest read on economic growth, the U.S. economy expanded at a 3.3% pace in the third quarter, up from an earlier read of 3%. The report marked the fastest growth in three years.
Sløk added that the chart explained why the U.S. Federal Reserve was raising interest rates: "because as actual GDP continues to move above potential GDP inflationary pressures will continue to intensify."
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