Though the numbers were what they were, much of it wasn't real. Sort of like.... "Hey, we have a check book and credit cards!!! We're rich!". We've truly went from bad to worse though. Now, we can't even print/borrow our way to good economic stats. Just back out the borrowing by .gov alone from GDP and you'd probably see at least a 10% contraction. Comparing the deficit between then and now is just staggering.
I agree with you. The apparent “prosperity” of the Baby Bush years was mostly false, fueled with a flood of cheap credit awash after 9/11. It wasn’t based on savings and investment, but on consumption and debt.
Good observation.
“Though the numbers were what they were, much of it wasn’t real. “
You’re right, although saying so isn’t going to be popular.
In California in particular, the boom of the 2000s was equal to the amount of home equity withdrawal. It was a personal debt fueled boom.
Everyone here in SoCal thought their house had become an income generating machine.
House prices went up every year and my fellow Californians, displaying the sophistication of a Cargo Cult, knew that this would never come to an end. Since your house would always be worth more next year you would never have to pay the money back.
And while it’s mildly amusing to remember that that is what millions believed, you really have to marvel at the lenders who bought into it too.