No sense wasting too much of this year-end report on what you already know. The financial sector is back from the brink; the largest banks are able to raise capital and earnings sufficiently to repay their government bail-out loans and have enough left over for generous bonuses. Share prices have recovered half of the ground lost since they peaked. Consumer spending is up a bit. Sales of existing homes are at close to a three-year high, but a large supply of new homes gluts that market. The job market seems to be improving, but the unemployment rate is in double digits, and almost 40% of those out of work have been jobless for 27 weeks and longer. The American health care system is to be overhauled, with the 17% of the U.S. economy it represents to be firmly under government control. Ben Bernanke is to be confirmed for another term as chairman of the Federal Reserve Board while he figures out when and how to drain liquidity from the system. And President Obama, although still popular, has seen his popularity rating drop below that of Bill Clinton and George W. Bush at this time in their presidential careers.
So much for what is obvious even to the casual observer. Less obvious are some important changes that are likely to be with us long after the current recession is history.
