Larry Summers Is Concerned About Shutting Down Support For The Economy Too Soon

Larry Summers reminds us that economic forecasting is far from perfect. We usually don't know what is likely to happen in the economy until it has already happened. He reviews some the things that we should worry about, and he points out that there is a lot of latent demand in the economy because of slow household formation and deleveraging. At some point that demand will be realized and the economy will head upward. His major worry is that government will turn of the fiscal and monetary policies that prevented the economy from moving into depression too early. We are not yet out of the woods. (He must remember 1937 when government policies reignited the depression)