With unemployment hovering near 10% for nearly two years now, it should be obvious that the economy is no where near capacity.  Yet, many on Wall Street and in the talking-head TV shows continue to maintain that government borrowing is “crowding out” private investment (or going to soon).  Um, I don’t think so.  Crowding out would be seen in rising interest rates.  But a look at the data shows we’re still hard against the “zero bound”.  In other words, interest rates are still about as low as they can go.