Paul McCulley on Bloomberg on Minsky, Liquidity Traps, Euro, and Fiscal Policy

3 responses to “Paul McCulley on Bloomberg on Minsky, Liquidity Traps, Euro, and Fiscal Policy

  1. Folks keep trying to tag the drop in participation rate as a baby boomer thing, except there's a problem. The drop wasn't supposed to start for a few years yet, and if you buy this explanation, you have to say it is somehow already in full swing. Now, it may be that many who are part of this drop are in fact boomers, but I'd suggest that if this is so, it's because of FORCED dislocation, and not voluntary retirement.

  2. [email protected],You are SO correct.I also was wishing he would have pushed the host off the "liquidation" meme and onto a view that was more suggestive of allocative corrections, ala "rationalization" or "improving resource utilization".But except for those glitches (arguably excusable in a live interview context, and which I would guess he would acknowledge), how dazzling is this guy McCulley at explaining the mess we are in? He should be on TV every day, turning the tide.Thx to NEP for posting this. Any other brilliant retired hedge fund types, who are now willing/able to speak economic truths, out there that we don't know about?

  3. I think McCulley is right on, particularly in his emphasis on systematic public investment in our people.