Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Stiglitz Says U.s. Faces `anemic Recovery,' Needs More Stimulus

Recommended Posts

http://www.bloomberg.com/news/2010-08-05/stiglitz-says-anemic-u-s-recovery-means-obama-should-seek-more-stimulus.html

Nobel Prize-winning economist Joseph E. Stiglitz said the U.S. economy faces an “anemic recovery” and the government will need to enact another round of “better designed” stimulus measures.

The Obama administration took “a big gamble and it doesn’t look like it’s paying off,” Stiglitz told Bloomberg TV in an interview in Sydney yesterday. “The recovery is so weak that it is not strong enough to generate new jobs for the new entrants in the labor force, let alone to find jobs for the 15 million Americans who would like a job and can’t get one.”

The ex-World Bank chief economist spoke as Mohamed A. El- Erian, chief executive officer at Pacific Investment Management Co., estimated the possibility of deflation and a double-dip recession in America at 25 percent. The U.S. lost 65,000 jobs last month, according to a median forecast of 81 economists in a Bloomberg News survey before the Labor Department report today. The unemployment rate climbed to 9.6 percent from 9.5 percent, the survey showed.

Labor Department data yesterday also showed more Americans than projected filed for unemployment insurance, indicating employers are still cutting staff. Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April, according to the data.

“It’s absolutely clear that you need a second round of stimulus,” Stiglitz said. “It needs to be better designed. It needs to be focused more on returns on investment, education, infrastructure, technology. And if you do those kinds of high- powered investments, the long-term national debt will be actually lower and the growth in the future will be higher.”

I love how he thinks that Obama would actually get a stimulus package which actually aids the economy rather than create massive malinvestment. I wonder if he's also thinking that a new stimulus package will have to make up for the poor investments in the last stimulus package. Just keep bringing that demand forward.

The bubble has burst it cannot be re-inflated.

I wonder if I can get a Nobel prize by discovering that more alcohol will sober up the drunk.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.