Remove 2008 Remove Balance Sheet Remove Construction Remove Management
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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Historical evidence shows that this rarely happens following a balance sheet recession. The drop in construction spending is a necessary correction of previous overinvestment and is unlikely to be entirely reversed. In crisis-hit countries, it is unrealistic to expect the level of output to return to its pre-crisis trend.

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Fed Study Shows "Persistent Fed Overoptimism about Economic Growth"; What Will They Do About It?

MishTalk

Possible explanations for this pattern include missed warning signals about the buildup of imbalances before the crisis, overestimation of the efficacy of monetary policy following a balance-sheet recession, and the natural tendency of forecasters to extrapolate from recent data. A study by Alessi, et al. This is a general statement.

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