10 Major Economic Headwinds

09-07-2012 • Mike "Mish" Shedlock

"What is holding the economy back? Why is it that we've had such incredibly accommodative monetary policy for so long (but) we've had so little growth? I think it remains a puzzle," said Donald Kohn, who is now a senior fellow at the Brookings Institution think tank in Washington.

Adam Posen, who finished his final day as a member of the Bank of England's monetary policy on Friday and is a powerful advocate for more forceful central bank action, asked the same question as Kohn: "Why has all this lower short-term interest rates failed to make the economy go go go?" He argued that policymakers in Europe and the United States should waste no time in extending asset purchase programs to spur growth.

Alan Blinder, another former Fed vice chair who now teaches economics at Princeton, ticked off the two most blatant culprits for why the U.S. economy continued to struggle: government spending cuts and the drag from the depressed housing market.

1 Comments in Response to 10 Major Economic Headwinds

Comment by Anon Patriot

Entered on: 9/7/2012 8:54:32 PM

Somewhere along the line, the parasite class, forgot, that people aren't productive, and innovative, unless they are granted the incentive and freedom to be productive and innovative! But wait, since they want to simply protect the status quo, for their OWN benefit, by socializing their losses to the taxpayers, and privatizing, or directing all profits to themselves - it now makes sense, why they really aren't concerned about productivity, or innovation.

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