Stockman on the long term harm of financialization

Good discussion of economic facts with David Stockman this morning…

David Stockman, head of President Ronald Reagan’s Office of Management and Budget, and Paul Roberts, author of “The Impulse Society,” examine the state of U.S. fiscal policy, spending and budgets.  Here is a direct video link.

Asset bubbles have a fleeting bump in the wealth of some households and thereby perversely dissuade fiscal discipline and healthy saving and investment rates as the value of assets go up. Then when price bubbles burst once more, households and the economy are revealed to be years behind the capital targets needed. Here is a direct video link.

Central banks are wrong to increase their balance sheets and try to contain inflation at 2 percent. Here is a direct video link.

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