Not much time. Haven’t even read the full report yet
A few questions though based on a quick skim:
- Have we ever had this much investment in an economy so weak?
- How would you put this into a traditional Austrian Box? Are we in a mal-investment phase now. It would seem must be the case that the roundaboutness of production is increasing dramatically as Equipment & Software is rapidly outpacing Consumer Sales?
- From a PSST/Kling framework does this make sense as the Great Depression Part II accept this time the Telecom is playing the role of the Tractor?
This still seems consistent with a New Keynesian credit constrained household model with a contracting government. Construction still remains the really odd sector though it seems to flattening out and the signs for a construction boom are still building
I still lean towards increasing growth in the second half and going into 2012.
What are the issues: obviously sovereign debt here and abroad and oil. Oil and gasoline look to be trading to high to me but I am of course very interested to see what Jim Hamilton has to say about it.