“I see more dry tinder for financial flames than I’ve seen in quite a long time,” says Larry Summers to David Westin.  Dr. Summers is concerned with the “gravity” of the fiscal situation and even thinks we need financial crisis contingency planning.

“We’ve got something of an energizer bunny economy….  If anything, it looks like job growth is accelerating….  Interest rates may be less restrictive than they used to be.”

Back in 2008, he was more concerned about too much austerity, because interest rates were lower.  He believes we need to start contingency planning for a financial crisis between China, our bond market, stocks, real estate and private equity.