Dallas Fed: U.S. Economic Output May Never Fully Recover

While the causes of the global financial crisis have been discussed at length, and solutions are still being vigorously debated, the Dallas Fed has released the first comprehensive study of the total cost that the U.S. incurred between 2008 and now. Estimated losses range from $6 trillion to $30 trillion, with the possibility that the economic activity in the U.S. could be permanently stunted.

Pre-crisis trend path

“Our bottom-line estimate of the cost of the crisis, assuming output eventually returns to its pre-crisis trend path, is an output loss...