Sunday, June 12, 2011

Larry Summers and the hysterical theory of economics

At the same time we should recognize that it is a false economy to defer infrastructure maintenance and replacement, and take advantage of a moment when 10 year interest rates are below 3 per cent and construction unemployment approaches 20 per cent to expand infrastructure investment.
Here he claims rates are lower than trend, so lets build infrastructure. What infrastructure?  Is Larry Summers saying the we are deleveraging because roads have potholes?  The private sector is buying software and tech, they are not worried about the roads.

Summers has zero clue about which infrastructure to build because Larry Summers thinks we suffer mass psychosis, we are just frightened.

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