Economy Not Actually in Recovery? – Fox Business

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Recovery what recovery are pretty bleak picture painted by UCLA’s Anderson forecast economist Ed — Goes so far as the quote it’s kind of recovery it’s not even normal — it’s bad.

Oh and by the way Jamie Dimon says things are very volatile.

I don’t know I’m about ready to panic buying power panels here break it all — as an ox.

Is a former Treasury Department official Scott Martin is the chief market strategist at united advisors in Christian Dorsey.

Is with the Economic Policy Institute let’s tackle that you see Anderson at UCLA Anderson school of management.

Report first because.

They put this out what’s here it’s all I mean it’s like it’s quantitative work.

There is Susan what do you think I mean not even a — — — You normally have a V shape recovery you know you hit a slowdown like we had to bounce off the bottom they’re saying this is an even normal growth what’s.

One well sort of bouncing off the bottom we are sort of sending our way out of the hit a little bit and any — it’s more they’re more kind of said its — you know that’s with the economy doing if not great — that’s terrible service ended ended up Tanya it is neck.

But if you look at your first quarter GDP.

We still not terrible you know it’s 2.4 percent — ride down a little bit but it’s still it’s not tablets not a gangbusters recovery but it’s not terrible — kind of in this.

Money stop plays so we’re not if we’re not enough already saw both space — still like what are we 45 years — our — yeah — — yeah.

Had Melissa there’s other studies out there that looked at like — on trucks loads on trains.

That stuff is bouncing all over the place it’s not consistent you’re not getting — out in the economy — get stops not being demanded.

I’d like to see those studies turn up.

Along with this UCLA I — to at least convince me that something is bright.

— I think that there has — Christian I wanna get your response to this I think there has been a fundamental change in the economy will we have lost a whole bunch of jobs that are coming back.

And what we need to do is I mean this is like it the other times as has happened in the past maybe — have a war we’ve had the evolution of the Internet come along.

To spark a big structural change in the economy maybe — Sherlund — we could have an energy revolution in this country that would create all kinds of new jobs.

Spur on the economy would make manufacturing — because of all that energy Christian is that this’ll I got a solution do you have a — You know Melissa your solution would also create the problem of dramatically increasing our gas prices for consumers and bill — As you know what large — — it would — well what do it would actually — because caught up.

Internationally Melissa natural gas is trading at four times the amount that it cost in the United States if you see.

Markets normalize closer to that in which you would if you increased exports than the price for gas for US consumers.

Would choke off any associated benefits in jobs that you would get.

From from releasing those restrictions so.

That’s not I don’t think — going to be hot seller list views you would have to add on to the price but the cost of transporting an open air facility and that being the same rights that we wouldn’t end up every morning I — We’re not tapping into health got a shot at about the one point 45 trillion that’s with a — kids that we have overseas in cash — companies.

Because they don’t want to bring me back the US repatriation tax.

You bring that money back give the tax holiday OK they reinvest cap next hire people reported — Jamie got — Susan what’s your solution what do you think what do — — Think there are a lot of — seeing opportunities on the horizon I think.

It means that you look at ironies like kick starter you look at opportunities like in new — using consumer lending people are able to borrow from places other than just the traditional banks.

And people are really looking at how to get back capital set new markets throughout the world OK really new and interesting ways and I think that can revolutionize how — Howard distraught.

Okay — I got real crack.

A lot how about instead of trying to figure out where we can invent the next new.

I’m boom — we look at what’s tried and true and maybe a sustained infrastructure initiative that actually repairs and builds the stuff I need — and — keep us embedded didn’t.

So that’s fish shovel ready jobs — that’s all right so jobs that — for the well first time.

Let’s get about a Jamie Dimon because I don’t wanna ran out of time here is so he’s over in China and believe it wasn’t he’s talking about the fact that eventually we have to get back to normal interest rates.

And — the transition to that this is this dreaded transition that everybody’s been talking about when the Fed actually gets out of the market everything begins to go back to normal.

We’re gonna see a lot of volatility as — return to normal and go lapses and I I mean — biggest expert on this but are you worried about this transition when Ben Bernanke gets out.

I think this is the fear of the fear.

I think Jamie — actually said he wants to see interest rates get back ex — place yes he’s worried about with the volatility is that.

So I think what — what that if you Parse that out what he’s saying is.

I’m gonna react normally when it happens but I’m worried about what everyone — — is not scared of anything except out but he he’s he’s he knows what he’s gonna do he’s gonna happen modest reaction ban or whatever else is — — so it’s it’s.

I think I’m it is going to be volatile act OK but I think it’s more people are more afraid of the fear — they are ranked no higher rates he was on your show three months ago talking about how bank profits stake because the rate curve is so flat.

You get rates to normalize that’s gonna benefit banks that’s the structure of our economy.

Yes a what does that have to do with him being a pretty — well that’s what’s really gets you — hello this is good for your bank still don’t know her digit heat he wants — he thinks the process of getting there.

— — — — OK you know it’s like not go to jail no doubt it’s what and when I go to the gym no pain no gain if you’re not making it hard enough racing you know I — unless.

They can all be managed very carefully with monetary policy where you have a very slowly rising of interest rates and it’s based out.

Over significant period of time to allow the economy to adjust the fear actually think he’s right to put that out there so that everyone is cautious about.

Overreacting to interest rates and interest rate increases okay — naturally have to call.

Anyone who has a sense of whether or not the Fed can manage us out of this wouldn’t you think it would be Jamie Dimon so he says it’s — be volatile ones carried out if you think he probably has its finger on the pulse goods and really — bank Ben Bernanke’s biggest fan and a lot of respect.

But I also think don’t forget volatility does help the banks in some respects — — trading operation they love volatility traders now that’s when you make money — maybe by bank stocks are all that — everything’s gyrating around a bit and JPMorgan that’s one thing you can do all right you guys are great thank you so much for coming — we appreciate it.

I think we we solved — all where it’s good I’m not — — are coming up on.