Published on Zero Hedge (http://www.zerohedge.com)
David Stockman's Non-Recovery Part 4: The Bernanke Bubble
By Tyler Durden
Created 06/22/2013 - 10:57
From Part 1's post-2009 faux prosperity [1] to Part 2's detailed analysis of the "wholy unnatural" recovery [2] to the discussion of the "recovery living on borrowed time" in Part 3 [3] (of this 5-part series), David Stockman's new book 'The Great Deformation" then takes on the holiest of holies - The Fed's Potemkin village. The long-standing Wall Street mantra held that the American consumer is endlessly resilient and always able to bounce back into the malls. In truth, however, that was just another way of saying that consumers were willing to spend all they could borrow. That was the essence of Keynesian policy, and to accept the current situation as benign is also to deny that interest rates will ever normalize. The implication is that Bernanke has invented the free lunch after all - zero rates forever. Implicitly, then, Wall Street economists are financial repression deniers.
Source URL: http://www.zerohedge.com/news/2013-06-22/david-stockmans-non-recovery-part-4-bernanke-bubble
Links:
[1] http://www.zerohedge.com/news/2013-06-17/david-stockmans-non-recovery-part-1-post-2009-faux-prosperity
[2] http://www.zerohedge.com/news/2013-06-18/david-stockmans-non-recovery-part-2-crash-breadwinners-and-born-again-jobs-scam
[3] http://www.zerohedge.com/news/2013-06-19/david-stockmans-non-recovery-part-3-borrowed-recovery-borrowed-time
[1] http://www.zerohedge.com/news/2013-06-17/david-stockmans-non-recovery-part-1-post-2009-faux-prosperity
[2] http://www.zerohedge.com/news/2013-06-18/david-stockmans-non-recovery-part-2-crash-breadwinners-and-born-again-jobs-scam
[3] http://www.zerohedge.com/news/2013-06-19/david-stockmans-non-recovery-part-3-borrowed-recovery-borrowed-time
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