We've had our differences with Greenspan over the years. He could not be more correct however in a recent article in International Finance. Gov’t “activism” he said, including fiscal stimulus, housing subsidies, and the slew of new regulations on the employer, are holding back the recovery. Companies’ hesitation to hire and invest, “can be explained by the shock of vastly greater government-created uncertainties....”
The only difference we have with Greenspan on this one, is timing. This paragraph fit perfectly pre-Nov/2. Since then, damage has been stopped and efforts made at resuscitation. Consumers have taken note. Employers have taken note. This event - Nov/2 - explains more than any other single factor the surprising growth of recent months.
Buy holy moly folks, in the good ‘ol days, all you had to know was economics. Now you’ve got to have half of Washington wired and a spook or two in the mid east or you can’t make strategy worth beans.
Robert Craven
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