CARPE DIEM: Why Subprime Mortgage Crisis Won't Cause A Recession: The U.S. Economy Survived S&L Crisis

Helge: How will the US banking crisis going to affect industrial and infrastructure investments? What kind of changes are we going to face in the near future? How long a deep effects are we going to see? What kind of industries and investments will be affected?

CARPE DIEM: Why Subprime Mortgage Crisis Won't Cause A Recession: The U.S. Economy Survived S&L Crisis: "In some ways, today's economy is in much better shape than the U.S. economy of the 1980s, e.g. unemployment rates today (4.6% average over the last two years) are much lower than the 1980s (7.3% average).

Consider also that not a single U.S. bank failed in 2005 or 2006 (see chart above), and only 3 banks have failed in 2007, which a very impressive record of only 1 bank failure per year on average over the last 3 years.

I am pretty sure that there has never been any two-year period in U.S. history without a single bank failure in the U.S., and no three-year period in U.S. history with only 3 bank failures. The U.S. banking system has never been as strong and as stable as it is today."

Helge: Who is saying this?

Mark J. Perry

• Gender: Male
• Astrological Sign: Sagittarius
• Industry: Education
• Occupation: Professor
• Location: Flint : Michigan : United States

About Me

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.