Economic Armageddon Could Still Occur

Economist Paul Krugman and Obama's economic adviser Laura Tyson claim US Economy May Be on Brink of Recovery.
 

"The US economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, said Laura Tyson, an adviser to President Barack Obama.

“ 'We may have hit stability, we may be in the beginning of an upturn' based on the latest economic data, Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur. Nobel Prize-winning economist Paul Krugman said the deepest slump since the Great Depression may be ending."

Krugman Thinks "Stimulus, Round 2" Needed

But Krugman, unlike Tyson, thinks a second stimulus is still needed -- as per US Economy May Have Reached "Trough."
 

"The US economy is stabilizing and may have bottomed out, as the government’s stimulus plan probably saved a million jobs, Nobel Prize winner Paul Krugman said today.

"A second stimulus package for the economy is still needed, and should be directed at state and local governments as well as infrastructure spending, he said in an interview in Kuala Lumpur. The world economy may face several years of weak growth without falling into a 'double-dip' recession, he said.

“ 'It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,' Krugman, 56, said. 'My guess is that we’ve bottomed out now, that August was probably the trough month.'

"Krugman said in June the US may emerge from its downturn by September. In a June 9 speech, he said damage from the US recession may persist 'for a very long time,' with no clear engine for renewed growth."

Bernanke Should Be Fired

Bernanke never saw this coming -- then blitzed us with various alphabet-soup measures attempting to prevent another Great Depression.

About a week ago, Calculated Risk wrote "I'd like a doctor who never gave up trying for a cure, but I'd prefer someone with better diagnostic skills."

Indeed.