Bernanke and Summers don’t understand secular stagnation
It took private equity firm, the BlackStone Group, less than four weeks after an approach from General Electric to clinch the biggest real estate deal since the financial crisis. As part of a wider restructuring, GE announced on Friday that it would sell most of the assets in its Capital Real Estate unit to Blackstone and Wells Fargo for about $23 billion. GE’s move away from finance operations allows the company to break free from its regulatory constraints, which were deemed “systemically important” following the financial collapse. Erin weighs in.
Then, Erin sits down with Steve Keen – head of the School of Economics, History & Politics at Kingston University. Steve says Ben Bernanke and Larry Summers’ blog debate over secular stagnation stems from their lack of understanding of how important private credit is for private sector growth and employment. He makes the case that understanding private credit dynamics would help diagnose crisis economics in the European periphery and elsewhere. Steve also gives us some insight on what went down at the recent INET conference in Paris.
After the break, Erin is joined by Daniel Alpert – managing partner at Westwood Capital. Daniel tells us why the BLS numbers from March were not simply a temporary blip as other economists argued. Dan also gives us a comprehensive outlook on the US housing market.
And in The Big Deal, Erin and Edward discuss why the New York Times Editorial Board has described “too big to fail” banks as “unsafe and unsound banks.”
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