tag:blogger.com,1999:blog-3621026.post1846798235150847058..comments2024-03-28T10:25:22.825+01:00Comments on Robert's Stochastic thoughts: DeLong's questionsRoberthttp://www.blogger.com/profile/14455788499385673507noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3621026.post-76976248331823437102014-01-04T17:40:54.575+01:002014-01-04T17:40:54.575+01:00I think economists are handicapped by their models...I think economists are handicapped by their models in answering these questions. Globalization and internet-based automation has been destroying US jobs at a pretty fast clip. The super low mortgage rates and the easy credit of the early 2000s hid this fact. HELOCs let people consume based on a false premise of increased wealth. Once that all collapsed, consumption collapsed, further affecting employment. And here we are. The accumulation of wealth at the top of the food chain means that there is huge demand for safe assets, thus low treasury rates. The cash is all in big Scrooge McDuck piles not being put to use.Anonymousnoreply@blogger.com