Sunday, April 17, 2016

The Keynesian House Of Denial
"So long as the central bank is in full-on stimulus mode——and by any historical standard a 38 bps money market rate is exactly that—–the economy can not fail or lapse into recession. Economic growth and expansion are definitional. That’s why central bankers and their Wall Street camp followers never see recession coming. It can’t happen on their watch! So this week we got another flashing yellow light. The core data from the business economy warns that the current tepid and long-in-the-tooth business expansion is coming to an end and that the next recession is lurking just around the corner, if it has not already arrived. The Eccles Building and its Washington/Wall Street acolytes have become a House of Keynesian Denial because the assumption that capitalism is an 80 pound recessionary weakling without the constant ministrations of the state is dead wrong."
- David Stockman*
link here to the essay

No comments: