Tuesday, November 6, 2012

How Long The Economic Stagnation?

Q: Is the end of the yield famine still far away?

A: Yes. Very far away. We’re in a long-term slump due to massive over indebtedness. We’ve simply got too much debt for the economy to return to normal growth. Worse, none of the usual policy fixes — like debt-funded government spending — will work. Washington is likely to make our economic problems worse, not better, because the only “cure” is time — time for the burden of debt to decline.