It is structural change not cyclical. Via Joseph Carson, Former Chief Economist Alliance Bernstein:
Economic recession is an infrequent occurrence, but in a fundamental sense recessions are the economy’s way of cleansing the “rot” out the system that have been built up over time. This emanates from bad investments, bad loans, bad policies, excessive risk and speculation.
Recessions expose the vulnerabilities of the economy and the financial system. Even though the proximate cause could come from an outside shock it’s the weaknesses and imbalances that are the underlying cause. So when the “right” shock comes along the fragile structure would collapse. Recessions fundamentally change behavior and policies and post recession business and finance will be materially different.
