Posted on 08/08/2009 9:59:12 PM PDT by Pride_of_the_Bluegrass
10. No innovation. As Nobel Prize Laureate Edmund Phelps told Bloomberg News Aug. 2, “I’m not convinced that there’s going to be another wave of innovation in the offing.”
9. Speaking of innovation, the US is not getting the clever immigrants it used to. Remember that almost half of Silicon Valley during the tech bubble peak was Asian.
8. China will hold its own but its economy is too small to act as a locomotive for the rest of the world (maybe for Korea).
7. The US only can finance its nearly $2 trillion annual borrowing requirement if banks and households buy Treasury securities rather than riskier corporate securities or mortgages. If the rest of the economy starts competing with the Treasury for capital, interest rates rates will rise immediately and suppress economic activity.
(Excerpt) Read more at blog.atimes.net ...
David Goldman is 'Spengler', whose work has been posted more than once on FR.
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