An L-Shaped Recovery Is Not an Anomaly, It Is the Norm.

The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even worse.

This Audio Mises Wire is generously sponsored by Christopher Condon. Narrated by Millian Quinteros.

Original Article: “An L-Shaped Recovery Is Not an Anomaly, It Is the Norm.​​”