Why America Isn't Headed for a 'Lost Decade'

You have a country with a banking crisis that spreads to the financial markets. Then a puffy bubble in the real estate market pops. After that, thereâ??s a persistent overhang of private-sector debt, and everyone starts deleveraging. This last renders most policies the central bank applies modestly effective at best, and a sharp recession starts to look like a prolonged agonyâ??perhaps a long dip in the pond of deflation. Finally, thereâ??s a political piece: The government and the policy planners are tied up in knots and cannot seem to do much to remedy things.