In this interview, Larry Summers discuses his hypothesis that the slow economic recovery is not just because of the financial crisis, but due to a predated crisis. He describes Secular stagnation as the inability of the economy to re align itself to allow sustained full employment and financial stability. He concedes though that it is hard to tell the difference between an economy that is unable to generate enough demand to one that simply has not yet generated enough demand. And while the American economy has not recovered as predicted, it is not certain that the term secular stagnation can be applied. Summers points out though that even before the financial meltdown, the housing bubble was the only thing that kept the economy above adequate, without the bubble, the economy would have been at an inadequate performance level. Despite seeing this issue, Summer can not specifically identify when this pre crisis began. Economists have estimated what they call real neutral interest rates. While there are multiple reasons for the decline like slower population growth, economists have been worried by this two decade decline. This decline though does not mean that bubbles should be created, it is more likely that with the low natural rates, there will be more bubble created. Summer's puts forth some strategies in which to bring up these natural rates. The first one is to do nothing and let the "invisible hand correct the economy, this though has been done, and it has not helped. The second is what the government has started doing, which is trying to increase demand by relaxing restraints on interest rates. This technique though increases the risk of creating financial bubbles. The third solution which Summer's puts forth is that the government should invest the short term debt proceeds into real assets that will increase the economy’s capacity and diminish the need for future government investments. Overall, Summer's worries that secular stagnation is what is holding the economy back from a healthy recovery. His third solution is what he believes will be help the economy recover if secular stagnation is holding it back.