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Federal Reserve

The 'hothouse' economy

The 'hothouse' economy

This year is starting off with the worst performance of stocks in decades. It has many analysts wondering exactly what's driving it and, more importantly, whether there's an end in sight.

For a long time, I have maintained that the U.S. economy has been in a state of "realignment" as opposed to normal cycles of recession and recovery. What's happening now is not a correction of an overvalued marketplace, it is further evidence of that continuing realignment.

Recovery from the last recession continues to be sluggish. Real U.S. GDP has grown a total of 14.34 percent over the 25 quarters following the 2009 recession. Post-recession recovery rates have, in fact, been...