Gloomy economics professor turns sunny

Posted by Al Lewis on January 28, 2011
Economy

It may be time for me to finally start thinking more positively about the economy.

Robert Z. Aliber, who foresaw the devastation the housing bubble would wreak, predicts economic growth may average as much as 5% this year. Growth in the nation’s gross domestic product, reported today, fell far short of that for the fourth quarter of last year – at only 3.2%. But it is growth nonetheless and Aliber explains why things can get better.

Aliber is a professor emeritus at the University of Chicago who once worked beside economics icon Milton Friedman, and he has just published a new book: “Your Money and Your Life: A Lifetime Approach to Money Management.”

Click here to read column.

2 Comments to Gloomy economics professor turns sunny

ContrarianAdvisor
January 28, 2011

Well written, but nobody is right 100% of the time. I know the dude that made $5B off crisis just announced his hedge fund banked $5B being long in 2010, unless you are fundamentalist and cared for what you see on the street, you would go with the FED QE gambit….you are being told you cannot lose.

Let’s see Obama is now(or was) surrounded by who? Larry Summers, Geithner, Immelt (he wont be biased?),Blankfein and a host of other insiders…boy that’s change for ya.

Surely the CHINESE will be persuaded to let currency rise….haaa.Gov’t assistance props up 20% of Americans and we are , still, will be debt laden consumer economy, if that’s the greatest well I’ll be…
Losses at banks can continue to be hidden, so thats good.
0% interest in your money that’s good too. How well did FED plan of 1% rates held far too long work out?
SO MORE DEBT piled onto what was already a keeper for record books, that’s what leads to new bull mkt? where are the adjustments and balance? COmmission didnt mention FED rate policy in report…tear it up.

Duratek

Ekim
January 29, 2011

Okay, printing/stimulation is resulting in more activity. Is the new activity productive, or mostly of the unproductive ditch digging/refilling variety? IOW, is printing resulting in just another new bubble, that will create an even worse situation for the country in another couple of years? Will we wind up with the equivalent of millions of empty McMansions dotting the countryside again?

I am concerned that many economists do not seem to differentiate between productive activity and unproductive activity. Unproductive activity results in loans not being repaid, and endless taxpayer bailouts.