David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression.
Rosenberg sums it up like this:
This is what a depression is all about — an economy that 33 months after a recession begins, with zero policy rates, a stuffed central bank sheet, and a 10% deficit-to-GDP ratio, is still in need of government help for its sustenance.
Each one of these 13 reasons is more damning and highlights the true state of the economy: caught in a liquidity trap with little way out.
Wages and salaries still down 3.7% from prior peak
Source: St. Louis Fed
Real GDP is still down 1.3% from the peak
Industrial production is still down 7.2% from the peak
Industrial production data, from the Federal Reserve.
Employment is still down 5.5% from the peak
Civilian Employment St. Louis Fed
Retail sales are still down 4.5% from the peak
Retail sales, from the St. Louis Fed.
Manufacturing orders are still down 22.1% from the peak
Manufacturing orders, from the St. Louis Fed.
Manufacturing shipments are still down 12.5% from the peak
Manufacturing shipments, from AccuVal.
Exports are still down 9.2% from the peak
U.S. exports, from Trading Economics.
Housing starts are still down 63.5% from the peak
Housing starts, from the St. Louis Fed.
New home sales are still down 68.9% from the peak
New home sales, from the St. Louis Fed.
Existing home sales are still down 41.2% from the peak
Existing home sales, from Realtor.
Non-residential construction is still down 35.7% from the peak
Non-residential construction, from biz570.
Corporate profits are still down 20% from the peak
Note: From the St. Louis Fed charts, we can’t see the conclusion Rosenberg is coming to, as profits appear to have now drawn level.