If you look at yesterday's post, you can see that after this percentage
fell from about 80 to 75 from Dec. 2007 to Oct. 2009, it stayed there
for about two years. So the trend line I have starts in Oct. 2011. Maybe
that is when the recovery actually began.
So I start the trend line there. Early on, it looks like about 12 months
are above the trend line. Then for awhile there are points both above
and below the trend line. But each of the last 11 months is above the
trend line (except for one, which looks like it is right on the line). Not sure if this is a good sign or not (is the economy
overheating?).
Click here to see the graph from the St. Louis Fed.
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