The Underlying Forces Holding Back U.S. Economic Growth

The transcript discusses the challenges of the US economic recovery, focusing on debt servicing and the impact of Trump administration policies. It highlights the high debt levels in both public and private sectors and the risks of adding new debt. The discussion also covers the potential effects of fiscal stimulus and tax reforms on GDP growth, considering structural impediments. The outlook for 2017 is cautious, with concerns about market dynamics and investment strategies, particularly in bonds and equities.

What is the main concern regarding the US economic recovery discussed in the first section?

• The rise of unemployment rates

• The impact of climate change

• The ability to service increasing debt costs

• The decline in technological innovation

Which policy is considered a 'low hanging fruit' for boosting sentiment and inflation expectations?

• Infrastructure spending

• Education investment

• Tax cuts

• Healthcare reform

What is the best hope for the new President to manage the debt stock, according to the second section?

• Cutting government spending

• Reducing taxes for the wealthy

• Raising nominal GDP

• Increasing interest rates

What strategy have hedge funds adopted in the bond market?

• Long bonds

• Short bonds

• Invest in real estate

• Buy gold

What might cause insurance companies to start investing in bonds?

• High short-term yields

• Attractive long-term yields

• Decreasing stock market returns

• Rising inflation