People at Deutsche Bank seem to be sure: the so-called “secular stagnation” is now over for the US, it would be a shame if something bad suddenly happened to the economy (as it always does, sooner or later)
Larry Summers (i.e. the man who said no to the position of Fed Chairman before Janet Yellen was nominated), has a famous theory about the US economy which has been called “The Secular Stagnation”.
In the following chart you can see what it is, and why Deutsche Bank thinks it’s a theory that belongs to the past:
There has actually been a positive change in nonmanufacturing ISM, but will GDP really follow ?
And, even more important, how much can this positive trend go on ?