Friday, October 28, 2011

Credit Suisse: The Economy is in Expansion Mode

Oh boy, the Keynesians are starting to figure it out. There will be no double dip. The recession is in fact over. Paul Krugman will not only be proved wrong about the denial of price-inflation, but he, Nouriel Roubini, Joe Weisenthal and most other Keyensians will be wrong about the overall economy.

According to Bloomberg, “The American economy finally has accomplished the recovery and has now entered the expansion,” said Neal Soss, chief economist with Credit Suisse in New York, who was an aide to former Federal Reserve Chairman Paul Volcker.

Naturally, since Soss is a Keynesian econometrician, he doesn't get how major the Bernanke manipulated turn around will be and hedges his comments about the recovery in the economy by also saying:
But the growth is clearly too slow to solve the most significant problems the economy faces: jobs and getting the public budgets under control.
Pfft. Jobs are a lagging indicator. Further, as the price inflation heats up it will push the marginal revenue product of many above the minimum wage, which will make them employable.

1 comment:

  1. Instead of "Expansion Mode" or "Recovery," a more accurate description would be that the press should use is "Malinvestment Mode."

    While the Kudlow types cheerlead and celebrate, the real problem of the business cycle (artificial boom) is created.