Friday, December 11, 2009

Volcker Says ‘Basic Structure’ of Economy to Impede U.S. Growth

Bloomberg reports:

“Former Federal Reserve Chairman Paul Volcker said imbalances in the structure of the U.S. economy pose a bigger challenge than the financial crisis and will impede economic growth for some time.

We have another economic problem which is mixed up in this of too much consumption, too much spending relative to our capacity to invest and to export,” Volcker, an adviser to President Barack Obama, said today in Berlin. “It’s involved with the financial crisis but in a way it’s more difficult than the financial crisis because it reflects the basic structure of the economy.”

Of course, we said this over a year ago, when the people in power were running around like chickens with their heads cut off.

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