CHART OF THE DAY: Why The Recovery Was So Awful This Year

Joe Weisenthal 

 Dec. 22, 2011

Earlier we published some commentary from Goldman's Jan Hatzius, who explained why the recovery in 2011 didn't live up to his expectations.

Part of it was external shocks (the Tsunami, etc.), and some of it had to do with government spending (state and local retrenchment), but the main culprit, says Hatzius, was simply "the hangover".

Richard Koo demonstrated this nicely in this article on the Real World Economic Review blog.

What we've seen hasn't been so much a recovery from the recession, but a recovery from the financial crisis.
In other words, the crisis is over, the deleveraging lives on.

Read more: http://www.businessinsider.com/chart-of-the-day-the-recovery-and-the-lehman-shock-2011-12#ixzz1hIhQBlOo