Carmen Reinhart and Vincent Reinhart (yes, they are married) say history points to a long period of slow growth as the US economy retrenches.
We present evidence that the decade of relative prosperity prior to the fall was importantly fueled by an expansion in credit and rising leverage that spans about 10 years; it is followed by a lengthy period of retrenchment that most often only begins after the crisis and lasts almost as long as the credit surge.
Another reason to reform state government now so it spends less and borrows less.
