Richard Koo says governments are beginning to pull the plug too soon. Koo has maintained that the government needs to spend until the private sector balance sheet is repaired. The U.K is already beginning to cut the deficit and the U.S. is on the verge of doing the same (we are already seeing fiscal austerity plans in CA). Ultimately, if cutting occurs Koo says the double dip will hit:
Source: Bloomberg TV
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.