Regulation, de-regulation, boom and bust
Sure as the sun rises in the morning, there will be cycles of boom and bust. How long they last depend on luck and the management of the people involved.
Trump's team appears hell-bent on deregulation. That will almost certainly be good for short-term economic growth but what it means for the long term depends on how skillfully it's managed. If it's bungled, the boom and bust will be quick.
Mario Draghi is already sounding the alarm bells.
"The last thing we need at this point in time is the relaxation of regulation," Draghi told the European Parliament's committee on economic affairs in Brussels today. "The idea of repeating the conditions that were in place before the crisis is something that is very worrisome."
In a globalized, competitive world, countries that have more stringent regulation are the losers as capital and companies travel to where they can operate with the least amount of scrutiny.
So white the timing, severity and nature of the next crisis or bust is unknown; history will probably look back and blame Trump. Mario Draghi is already pointing the finger.
