Monday, January 18, 2016

Possibly two more years to complete deleveraging

Slow economic growth will persist until excess financing is worked out. But at the rate that balance sheets are being normalized it may take longer than two years (from now) to complete the correction. Hence our 2 percent real GDP forecast for 2016 and 2017. 

After the age of Deleveraging is complete, we believe that today’s new technologies will drive rapid GDP growth of 3.5 percent to 4.0 percent.