“No one should overestimate economists’ powers of understanding. Just as the magnitude of the global downturn that began in mid-2008 took most economists completely by surprise, so did the sclerotic nature of the recovery. Similarly, economic forecasts today appear to be nothing more than hopeful extrapolations of recent growth. In reality, all is not well beneath the surface. Should another financial crisis materialize, the subsequent recession might be even costlier than the last one, not least because policymakers will face unprecedented economic and political constraints in responding to it.”
USAGOLD note: When William White speaks, people listen. He is the former deputy governor of the Bank of Canada and economist at the Paris-based Organization for Economic Cooperation and Development. His views have gravitated in recent years to great concern about a potential economic crisis as outlined at the link above.
Repost from 10-8-2018