×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: Larry Summers | economy | disaster | financial

Larry Summers: Worry Not, Economic Armageddon Isn't Upon US

By    |   Tuesday, 12 May 2015 09:00 AM

Some of the remarks from former Treasury Secretary Larry Summers over the past few years could be read as extremely pessimistic for the U.S. economy and our role in global economic affairs.

But that's not the case, the Harvard professor says. "This is not a society that is stuck. It is a society that is uniquely able to be resilient through a constant process of savage self-criticism," Summers said at a conference Friday, according to CNNMoney.

He has warned that the economy might fall into a sustained period of weakness — secular stagnation. While secular stagnation is a "terrible thing," it's simply a "prediction as to what could happen if nothing is done" to stimulate the economy, Summers said.

"It is not an argument for fatalism. I for one am very optimistic about the future."

After growing 2.4 percent last year, the strongest since 2009, the economy slumped to 0.2 percent growth in the first quarter. And the Atlanta Federal Reserve's forecasting model puts growth at only 0.8 percent for the current quarter.

Many prophesies of doom and gloom emerged for the economy after news of the weak first quarter growth.

But don't overdo it, says Ambrose Evans-Pritchard, international business editor of The (London) Daily Telegraph. It's not that he denies the magnitude of the problem.

"The U.S. economy has suddenly stalled. A blizzard of shockingly weak figures raise the awful possibility that America's six-year growth cycle since the Great Recession has already rolled over, with unsettling implications for the world," he writes.

Referring to former Treasury Secretary Larry Summers' warning of secular stagnation, Evans-Pritchard, says, "we should not ignore his warnings lightly. Yet for once I am an optimist, clinging to the belief that the U.S. will recover from the strange air pocket of early 2015."

And what fuels his optimism?
  • "Fiscal headwinds have abated.
  • "Money supply is igniting.
  • "Commercial and industrial loans are growing even faster.
  • "The New York Fed says the post-Lehman purge of household debt has 'largely run its course.'
  • "The overhang of unsold houses on the market has essentially been cleared, and hot spots are booming."
Related Stories:

© 2022 Newsmax Finance. All rights reserved.


StreetTalk
Some of the remarks from former Treasury Secretary Larry Summers over the past few years could be read as extremely pessimistic for the U.S. economy and our role in global economic affairs.
Larry Summers, economy, disaster, financial
372
2015-00-12
Tuesday, 12 May 2015 09:00 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved