Jeffrey Snider, here:
The US economy is in serious, long-term trouble. We knew that very well by the volatile nature of GDP almost from the start (the big negative in Q1 2011, for example). Because orthodox economics is entirely obsessed with the economy that “should be”, it favors smoothing out what is truly pertinent texture because it isn’t directly cyclical by implication. What the mainstream needs is not to try to turn statistics into “ideal” numbers, but to actually see them for what they represent especially when they stray into unexpected ranges. From that perspective, weak quarters were not “anomalies” to be dismissed in a fit of confirmation bias, but rather warnings that actually explain how we got here and why everything from economists, especially“overheating”, was unlikely from the start.