Larry Summers Assures Us People Won't Live With Their Parents Forever
Yeah so about that cyclicality... when exactly is it supposed to cycle back around?
One of President Obama's top economic advisers said Tuesday that the economy will eventually improve and that "people aren't going to live with their parents forever."
Speaking at the National Journal's Workforce of the Future conference, Larry Summers touted Democratic legislation to spur the economy and Obama's proposal to reauthorize expiring tax cuts for the middle class. He also said he took comfort in the "inherent cyclicality to economies."
"On average, the economy forms about 1.5 million family units each year," Summers said. "Housing starts are running at four or five hundred thousand. That's a natural economic response to the kind of inventory that exists. That's a reflection of the fact that family formation slows in more difficult times. But people aren't going to live with their parents forever. Family formation will come back to normal and indeed will catch up to reflect the delays that have taken place."
Really? I'm sure wives are really thrilled to screw and get pregnant by their unemployed husbands when they themselves have been hitting the pavement for two years looking for a damn job. Sure, let's all go out and have babies so we can hurry up and stuff all that empty housing inventory we can't afford. Sounds like a plan, is Larry going to have Fannie and Freddie securitize Pampers and formula along with cat food and big screen TVs? Fuck it, if we're going to do this we're going to do it all the way.
I thought this was "new normal", is the family unit not included in that? I don't see grandma getting a job any time soon either and she certainly isn't making anything off her .8% CDs (thanks again, Bernanke!).