By Dan Weil Sept. 8, 2019 10:13 pm ET Harvard University economist Lawrence Summers sees economic danger ahead.
A Treasury secretary under President Clinton, an economic adviser to President Obama and a former president of Harvard, Mr. Summers doesn’t anticipate an economic nosedive. But he says he sees a nearly 50% chance of a U.S. recession before 2021. Despite healthy consumer spending and a resilient stock market, he sees threats from weakness in the U.S. industrial sector, the fragile global economy and trade tension.
At the same time, he says, the negative real long-term interest rates that prevail throughout major industrialized nations will leave central banks with little weaponry to fight economic weakness and could create a “black hole” where both economic growth and inflation stay very low.WSJ: How likely is it that the U.S. economy enters recession within the next year?
MR. SUMMERS: I haven’t been this alarmed since the financial crisis. That reflects the length of the expansion; the fact that we’re starting with very low unemployment; market indicators, particularly the yield curve; the weakness of the industrial sector; the susceptibility of the global economy to geopolitical shocks; uncertainties associated with trade conflicts that seem ubiquitous; and a growing deflationary specter outside the U.S.
Yeah, AFTER the shit hit the fan. That gives him credibility now? Uh, nah.
Sick and tired of hearing so called experts looking at the glass half empty! Sooner or later one of these idiots will take credit when we finally do lapse into a depression maybe in late 2020. In the meantime buckle up!
I really wish I completely understood what he was saying...
He has been influenced by David Hogg.
One guy. Nothing
realDonaldTrump Bro, Larry Summers has been reading the Wall Street Journal Got the memo: Time to speak up cnbc business FT TheEconomist So did the sltrib GeraldoRivera doesn’t read much these days AnnCoulter flunked econ IngrahamAngle didn’t take the class abc
😂😂😂😂😂😂😂😂
His warning is timely constructed so as to hurt Trump re elections.
He is from Harvard. Need I say more ....
geoff9cow Well, that’s because for the 8 years prior to Trump, we actually had qualified adults in the roles they were appointed to that had America’s best interest at heart instead of a group of grifters looking to line their own pockets...
What worries him is how strong it is.
'...the magnitude and durability of [today's] economic expansion is especially remarkable in light of the gloomy economic consensus [when Obama was in office] — during what even Obama economist Larry Summers referred to as 'the age of secular stagnation.'
Since day one..anyone who really knows Individual1 has been waiting for this. He is bleeding our country while lining his own pockets.
jesus, well he knew his friends would be taken care of, and elitist/sexist that he is, why think he'd give a shit about anyone else?
Globalist cry's wolf
and he is always wrong about the economy especially with Trump in power. Ask him if women are smart enough to teach the sciences at Harvard!!! LOL
You mean the one he missed...? Politics...because I need more proof in the data before believing we are 'nearing' any kind of recession. Even Yellen says as much.
I sure hope he isn't going the way of Paul Krugman. We need more economists in the world, and fewer political hacks.
Economists are bigger bullshit artist than politicians. And that's a lot of bullshit
This mutt backed the 1999 repeal of the Glass-Steagall + Futures Modernization Act of 2000 + Committee to save the World all of which fucked up the lives of millions and still people roll him out because Harvard or something. Jesus humans are lazy idiots
He’s been wrong before.
Ex sorcerer apprentice worried about markets. What a joke.
Isn’t this the same smart so-called economist who predicted that the economy would tank when Trump was elected ?
Strange feeling like one question is missing. cc EpsilonTheory
No longer credible due to TDS.
Sounds like he is auditioning for a position in the Trump administration.
This is exactly why we need AndrewYang at the helm
markpoepsel I saw the surname Summers, thought it was Marc Summers, saw it was a Harvard economist and became super disappointed.
It's Larry, fucking weirdos.
Well he is not alone.
Don't worry, Mr. Summers - the Tangerine Tyrant is at the helm. We're saved 🙄🙄🙄
Larry fricking Summers? This jackass couldn't figure out how chewing gum works.
Relax folks, the guys fails at everything he touches, he’s just taking down the economy to get a dem elected. Nothing to worry about here, move on
Before 2008 depression, he also said the US housing market is strong, and the finical sector deregulation, which caused the 2008 depression, was mainly driven by him, we should know whom he has been working for and definitely not for the free world
The fed disagrees
Again
Larry is right to be worried
The ones he caused?
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