A Difficult Year Ahead For The Economy

Desmond Lachman644 FollowersFollow5ShareSavePlay(6min)CommentsSummaryMuch like on the eve of the 2008-2009 Great Economic Recession, when the consensus view expected continued economic growth despite the major economic risks that were in plain sight, so too today the consensus view is that we will continue to see continued economic growth next year.This is the case despite record public debt levels, attacks on central bank independence, the crumbling of the international trade order, and bubble-like conditions in the US stock market and private credit market.In the context of bubble-like conditions in the stock market and the private credit market, the last thing that the US economy needs is higher long-term interest rates. Douglas Rissing/iStock via Getty Images Today’s widespread complacency about the US economic outlook has to remind one of that on the eve of the 2008-2009 Great Economic Recession. Much like then, when the consensus view expected continued economic growth despite theThis article was written byDesmond Lachman644 FollowersFollowDesmond Lachman joined AEI after serving as a managing director and chief emerging market economic strategist at Salomon Smith Barney. He previously served as deputy director in the International Monetary Fund's (IMF) Policy Development and Review Department and was active in staff formulation of IMF policies. Mr. Lachman has written extensively on the global economic crisis, the U.S. housing market bust, the U.S. dollar, and the strains in the euro area. At AEI, Mr. Lachman is focused on the global macroeconomy, global currency issues, and the multilateral lending agencies.