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Swift Steps Help Avert 'Lost Decade'

The quicker U.S. response to its real estate bubble should help it avoid the prolonged economic slowdown experienced by Japan

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The National Bureau of Economic Research declared that the recession ended in June 2009, but the pace of recovery has been anemic, and restrained growth expectations are in order for 2011.

The 3% rebound in real GDP over the four quarters ending in June was less than half of what the post-World War II record suggests should occur after a recession in which GDP fell 4%. Moreover, the U.S. economy evinced lingering fragility this summer with the onset of the euro region’s sovereign debt crisis.

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