“To have an effective monetary policy, you have to have a robust borrowing and lending cycle, ... The problem is that households and businesses are both overextended, while banks have problems with their current loan base. So we don't have a viable borrowing and lending cycle, which means that monetary policy is not working effectively.”
“The ratio of corporate debt to gross domestic product (GDP) is at an all-time high, ... And we don't know exactly what corporate debt is because so much has been parked off the balance sheet and hidden. But, even without knowing what the off-balance-sheet debt is, corporations have too much.”
“When we came out of the recession in March of 1991, GDP started rising very feebly, while the unemployment rate continued rising for another year and a half, ... The press called it a 'jobless recovery,' and it was one of the reasons [President Bill] Clinton was able to defeat former President [George] Bush. The average person on the street judges the economy by the job market.”
“When [consumers] shift their income stream from purchases to saving, it slows GDP, and that's a long-term process, ... I think interest rates are going to remain very low for a couple of years.”
“This isn't going to be settled overnight, ... In New York, there will be debris removal and shoring up subway lines, but not massive reconstruction. People will use up the extra space available in New York, New Jersey and Connecticut. That doesn't mean they're going to be building new buildings.”
“The Fed's raising rates is highly doubtful, ... The road to recovery will be very difficult and very uncertain. Inflation will continue working its way lower.”
“This isn't going to be settled overnight. In New York, there will be debris removal and shoring up subway lines, but not massive reconstruction. People will use up the extra space available in New York, New Jersey and Connecticut. That doesn't mean they're going to be building new buildings.”
“The Fed's raising rates is highly doubtful. The road to recovery will be very difficult and very uncertain. Inflation will continue working its way lower.”
“When we came out of the recession in March of 1991, GDP started rising very feebly, while the unemployment rate continued rising for another year and a half. The press called it a 'jobless recovery,' and it was one of the reasons [President Bill] Clinton was able to defeat former President [George] Bush. The average person on the street judges the economy by the job market.”
