What will U.S. economy look like when it recovers?
No one knows how long this U.S. recession will last, nor how bad it might get.
But few executives who spoke at this week’s Reuters Manufacturing and Transportation Summit in Chicago expect that when the U.S. economy emerges from its morass there will be the easy credit and high leverage that fueled the recent boom — and contributed to its collapse.
“What do good times look like when we come out of this thing?” said Wick Moorman, chief executive of No. 4 U.S. railroad Norfolk Southern Corp (NSC.N: Quote, Profile, Research, Stock Buzz). “You are not going to have all that cheap credit, all of that housing activity, all of that stuff fueling the economy in the way that it has for the past number of years.”
“So what does GDP look like in good times?” he asked.
Barring a few executives who were more optimistic, the answer at the summit was that U.S. Gross Domestic Product will look leaner and less dynamic for consumers and markets alike than during the housing boom — but that may not be such a bad thing.
…more…