Tuesday, 10 March 2009

The Bush boom and Goldilocks 2.0

In December 2007, Larry Kudlow, one of America's most well-known conservative commentators wrote in the National Review:

"Profits are stronger than people seem to understand. The ISMs are fine. Productivity, reported out today, soared to over 6 percent annually in the third quarter. That's the best productivity number in four years for output per person.

On top of that, business inflation is zero. Flat. Nada. The recession debate is over. It's not gonna happen. Time to move on. At a bare minimum, we are looking at Goldilocks 2.0. (And that's a minimum). The Bush boom is alive and well. It's finishing up its sixth splendid year with many more years to come."


By late September, US inflation hit a 16 year high. By the fourth quarter of 2008, the Bush boom was dead; the US had dived into recession.

Where did Goldilocks go?

2 comments:

Anonymous said...

Goldilocks? She got chased away by the bears.

Anonymous said...

The boom is back; the stock market surged today.