Economy Cannot Grow Fast Enough

31 Mar

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Editor’s Comment: 

Bernanke’s comments corroborate years of projections on this blog and by others including Johnson and Roubini.  We are kidding ourselves if we think that the economy is going to improve without addressing the housing problem.  In order to bring unemployment down to a level where the threat of financial chaos is truly diminished aggregate demand must increase significantly.  In our country aggregate demand is largely determined by consumer demand.  Consumer demand exists only where consumers have sufficient resources available to them to buy things.  

 At one time credit was relatively unimportant since median income for the middle class was sufficient to run a household on one income and still purchase the goods and services that the economy had to offer.  For the last 35 years median income has either been stagnant…

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