Re: Bernanke
On Sep 15, 2007, at 2:30 PM, Eubulides wrote:
Foreign investment in 2003 was $130 billion compared to $115 billion here at home. So we
don’t have a huge amount of excess capacity and, if we were to cut the
current account deficit by only 25 percent, our capacity utilization rate
would increase from 79 to 86 percent. If we cut the deficit in half, the utilization rate would go to 93 percent.” David Hale:http://www.levy.org/default.asp? view=publications_view&pubID=10654b0b370>
Bernanke’s point is that we need investment to increase capacity. The
Fed doesn’t like cap’y util much above 82%.
Doug