Monday, December 14, 2009

Larry Summers: Recession Is Over Because Everybody Agrees

All economists agree that the recession is over - There is a consensus and the economics are settled. Gee this sounds familiar.

Regular readers know that I am madly in love with the Great Recession. At first it was just a casual thing. Before I knew it I was feeling the kind of goofy, exhilarating crush I hadn't felt since I was a teenager. Now it's a full-blown amour fou.

Leave it to Larry Summers to insert his carcass between me and the object of my desire. Here is the director of President Obama's National Economic Council declaring the end of the affair to George Stephanopolous:
During my "This Week" interview, Summers said that “everybody agrees that the recession is over,” but he did not say when the unemployment rate could be expected to drop further.
Can the greatest genius of all time be wrong? Revised third-quarter GDP growth is said to be 2.8 percent. That's within the margin of GDP-boost that Council of Economic Advisors chairwoman Christina Romer claims has been created by government stimulus, but it's still growth. We have also seen two consecutive quarters of growth in net worth. Inflation may finally have been achieved, as the Consumer Price Index increased 0.3 percent in October and is expected to rise again for November. November retail sales were up slightly over last year. (Though I have yet to see a more-than-half-full parking lot at a shopping center this Festivus season.) Read more.

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