If you’d like some cheery reading so you can start out your day with a smile on your face and a spring in your step, by all means do not read Peter Morici’s op-ed. The University of Maryland eonomist warns of a pending economic collapse:
Having failed to adequately address what caused the Great Recession—China’s trade surplus and the imbalance in demand between the Middle Kingdom and the United States, the cowboy culture on Wall Street and the plight of underwater homeowners—not much can be done, having squandered the grace created by stimulus spending and easy money. Get ready for a bad ride.
Basically, policy has shot its wad.
I’m not quite that pessimistic but I do suspect that we won’t make the reforms that are necessary until all other alternatives have been exhausted. For one thing, those who benefit most from things as they are will see to it that we don’t.
Basically, policy has shot its wad.
The ultimate money shot?
Nouriel Roubini has similar dire economic predictions for this country, as well.
Some right and some wrong from Morici. Still, it’s far better than getting it 100% wrong as most of his colleagues do. I don’t see that anyone here would fall into a funk over this, however, as we’ve all been expecting continued economic distress in the U.S.