It’s Likely That We Will Face a Recession, According to Larry Summers

by | Apr 23, 2023 | Recession News | 22 comments

It’s Likely That We Will Face a Recession, According to Larry Summers




Former Treasury Secretary Lawrence Summers says a US recession is almost inevitable. He says if we’re going to go through a period of pain, we have to “slay the inflation dragon.” He spoke to David Westin on “Wall Street Week.”…(read more)


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As the United States approaches the end of a decade-long economic expansion, there are growing concerns about the potential for a recession in the near future. One prominent economic thinker who has recently weighed in on this issue is Larry Summers, a former U.S. Treasury Secretary and President of Harvard University. According to Summers, a recession is almost inevitable, and policymakers should start preparing for the worst.

In a recent op-ed in the Washington Post, Summers argued that there are a number of factors that suggest a recession is coming. He noted that the yield curve, or the difference in interest rates between short-term and long-term government bonds, has been inverted for several months. This means that investors are demanding higher returns to invest in shorter-term bonds, which is often a warning sign of an impending recession.

Additionally, Summers pointed to weaker economic indicators such as declining business investment and slowing job growth. He also noted that the global economy is facing major challenges, including trade tensions and political instability, which could further exacerbate the risks of a recession.

Despite these warning signs, Summers argued that policymakers have been too complacent in their response. He criticized the Federal Reserve for not acting sooner to lower interest rates and boost economic growth, and he suggested that more aggressive fiscal policies may be necessary to stave off a recession.

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Summers also called for policymakers to focus on addressing broader structural issues in the economy, such as rising income inequality and declining social mobility. He argued that these long-term trends are contributing to political polarization and social unrest, which could further undermine economic stability in the coming years.

Overall, Summers’ warning about a potential recession should be taken seriously by policymakers and the public at large. While it is impossible to predict the timing or severity of a recession with certainty, there are clear signs that the economy is entering a more uncertain and volatile phase. As Summers suggests, policymakers should be proactive in preparing for the worst and addressing the underlying issues that are contributing to this economic uncertainty.

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22 Comments

  1. SPARE

    Has anyone watched Inside Job and role of this man?

  2. Slim

    “To slay the dragon” and stop the inflation he should lost his job ! What a clown !

  3. doinitforfun888

    Real Estate is down in some major markets. It will be very shaky market for the next 12 to 18 months.

  4. Bob Bobbington

    And the dingdong in the White House keeps trying to convince everyone nothing is happening, while his rich buddies cash out!

  5. Mid-Class VS Sup-Rich

    BIG INSTITUTIONS TRICKS!!!
    Last year when market was all time high they told US to buy buy buy. Now it's way down they create panic, fears and confusion to keep retail investors out. I'm buying every DIP. WAKE UP PEOPLE!!!

  6. BulkierWriter 2

    At this point civil war is guaranteed

  7. Sean Regehr

    A recession is the least of your worries. God's wrath upon the whole earth is what is at stake now! Pull your heads out of the sand now! Or find out first hand when none comes to save you!

  8. Mr.K

    DO NOT BUY! THIS IS OUR CHANCE TO CRASH THE HOUSING MARKET JUST LIKE GAMESTOP!

  9. David Kuhn

    Biden, after meeting with Larry Summers, said “recession is NOT inevitable”. That goes directly against what Larry Summers has been saying publicly weekly, for months now. Biden is lucky Larry Summers didn’t call him out for lying about their private discussion.

  10. netstarr77

    Why can't they just tell the truth and that is these fedsters CAN'T raise rates HIGHER THAN INFLATION.

  11. netstarr77

    So funny how these people are not even aware of the current economy

  12. Rex Stout

    He always sounds like he is about to die on the toilet.

  13. Bob Z

    Biden’s campaign promises to “end fossil fuels”

    “No more subsidies for fossil fuel industry…No more drilling, including offshore. No more ability for the oil industry to continue to drip. Period!”
    – Joe Biden campaigning

    As President:
    -Biden stopped issuing new permits for oil and gas leases.

    -He canceled federal drilling permits and pipelines

    -Just a month ago, Biden signed an executive order canceling three oil and gas leases in Alaska and in the Gulf of Mexico. They then eliminated 1,000,000 acres of potential drilling sites

    -Biden imposed an oil embargo on Russia, one of the world’s biggest oil producers.

    Open all energy sources and inflation will moderate almost immediately

  14. Susan Traikovich

    Bad ideas /policies create bad outcomes!! As long as you have idiots in power, failure and disaster soon follows. We deserve what we vote for. November can’t come soon enough.

  15. Peter Johnson

    We've been in a recession since 2008. Good for the suit to give us 70% odd of this.

  16. Real Face

    Summers, Majorkas, Garlant, Bernanke, Yelen, Greenspan, Madoff, Weinstein, Epstein, Schiff, Hilary C., Schumer, Bloomberg, Gates, Suckerberg… Google

  17. V K

    Antibiotics is a good analogy

  18. GNARGNARHEAD

    the FED knows what they are doing, and it shows…

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