Tuesday, April 19, 2005

Roach is a Broken Record; But in a Good Way

He has been preaching doom and gloom for the global economy for at least the last 15 months; probably longer. In recent weeks he has been writing that the global imbalances have finally reached some sort of inflection point and that the global economy is only going to get worse from here.

“Little wonder world financial markets are reeling. An unbalanced global economy is not in great shape. The global growth engine -- the United States -- continues to derive its sustenance from asset markets and the unsustainably low real interest rates that support a wealth-driven impetus to aggregate demand. Not surprisingly, the Bernanke thesis conveniently celebrates the result without looking in the mirror and acknowledging the bubble-prone Fed’s culpability in creating this moral hazard.”


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