Bob Doll,a Vice President at BlackRock,the world's largest money manager,notes that we had +10% growth from early 2007-early 2008,but we have to recognize we are now in a deleveraging world.We're gonna be in for a number of years of below trend growth of 2%,rather than 3.5% as it had been.
You can't target where this money is gonna go.If consumers are deleveraging,you really have to hit them over the head to change that,and Mr.Doll doesn't think that will be any time soon.People are being cautious,paying down the debt,and there's no confidence.The Federal Reserve has to buy time here,be steady as she goes,accept slow growth.
The Fed has announced it is maintaining its balance sheet,buying Treasuries to keep borrowing costs low in support of growth,or at least make a gesture to inspire confidence.
BlackRock(BLK)
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