At The Economist's Buttonwood Gathering in lower Manhattan this week, the prevailing mood was in opposition to the euphoria in the financial markets.
The odds of a 'double-dip' recession have declined in recent weeks thanks to Europe's latest bailout and another round of better-than-expected economic data, but "the risk is still there and I don't think there's a foundation for growth that will significantly bring down unemployment," Larry Summers tells me in the accompanying clip. "Unless we're able to get more demand going, we're not going to generate the incomes necessary to have growth to allow us to move forward."
In order to stimulate demand, the former Treasury Secretary and President Obama's chief economic advisor says the keys are infrastructure spending, tax cuts for middle-income families and relief for struggling homeowners via refinancing and/or mortgage modification.
On these issues, Summers says the President is "very much on theRead More »from Larry Summers: Debt Got Us Into This Mess and Debt Will Get Us Out