Financial Crisis Was a “21st Century Depression”

LOS ANGELES—The slow and steady GDP growth that we are experiencing today may be a residual effect from the financial crisis, according to Walt Kemmsies, managing director, economist and chief strategist at JLL. Kemmsies gave an economic update as the keynote speaker at NAIOP’s annual I.Con event in Long Beach. During the speech he called the 2008 crisis a 21^st century depression with a longer recovery than many realize.

“Part of low GDP growth is because of the [last] recession,” said Kemmsies in his speech. “It was really a depression, but it was a 21^st century depression where we cut interest rates and extended unemployment benefits. You don’t walk out of a financial crisis in six months.” He says that we really ended the recovery 18 months ago, which is why this cycle has felt so long. “We are in a low growth period, and I don’t think the Fed can raise interest rates.” While the US economy is growing slowly, there is no concern over a recession. “It is difficult to see a recession in the near term,” he adds. “We don’t see massive speculative excesses. We are focusing on sustaining economic growth.”