Signs of fading inflation and a few strong jobs reports aren’t enough for Larry Summers to sleep well at night. The contrarian economist and former Treasury Secretary is worried that consumers are running out of cash, businesses are cutting costs, and “geopolitical uncertainty” is on the rise. Combined, he warns that these “very large” risks could spark a cartoonish economic crash.
“I think the economy is vulnerable to a Wile E. Coyote moment where these things all come together and it’s like walking off a ledge sometime in the middle or latter part of this year,” Summers told Boston's NPR news station WBUR Wednesday, referencing the classic Looney Tunes character known for his not-so-successful attempts at catching the Road Runner. “I’m not predicting with confidence that that will happen, but I think the risks are significantly elevated.”
