Talk about falling off a cliff! This chart says it all and the big question is will it look more like 1950 to 1965 or more like or 1983 to 1990? We could flounder around for years, but I think we have to give great credit to the Fed and our politicians for their reaction to the latest crisis. Without QE1 and QE2 this chart would certainly be looking much worse. (See the full GAO report here or here for a concise blog post.) It's still a big question whether they can remove these economic life-support measures successfully without killing the patient, but a number of indicators point to a rise in employment just around the corner—hopefully for the long term!
