Tuesday, March 1, 2011

Feldstein on the economy

Big honcho from harvard speaks.

The quick summary:
Consumer spending less than expected, Congressional budget cuts will have minimal impact on economy, stock market is main source of optimism. Inl ine with my estimate of 2.7% growth rate next quarter.
Me: We are still in the period when foreign producers are gaining efficiency faster than we are. Most of the downward revisions are the discovery of this fact by economists.

Frankly? The Internet shows up and emerging markets discover huge opportunities for production and developed economies discover huge legacies of waste.

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