National Economic Outlook (July 2012)
Why has this economic recovery been so sluggish? In a normal recovery, job growth would be accelerating at this point, rather than dragging along at the same modest level month after month.
One culprit, off course, is the housing boom that left many homeowners with more debt than their home is worth. Another is the federal government that bailed out the big banks feeding the boom and had no money left to encourage job creation. And a third culprit is local governments that added a million jobs during the property-tax boom rather than banking the money and have now had to shed 500,000 of them.
In short, its the boom, stupid!