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.
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he points out clearly that fed stimulated economy to banks and other big players to tune of $2.3 trillion
ie the amount of increase in stock market worth - all while money markets only depleted $400 billion
hmmmmm, gaming the system in a sleazy taxpayer way
all is well - come on out - we're back to the old days
can S&P 1200 be far away - much farther probably
but S&P 600 looks more likely every day
(paraphrasing:)
"...a second stimulus assumes the first stimulus had some positive effect...can you quantify that positive effect?"
No doubt that Bernanke pulled one out of his a$$, but so far the collapse has not arrived.
I will give him the benefit of the doubt until it does.
That doesn't mean that we do not all continue to secure our own personal economic staying power.
Just a thought that the armageddon is rarely as bad as we imagine it will be.
Armageddon would be more merciful than a Marxist take-over.
Wiping out corporate debt by transferring it to public debt will continue - call it whatever. Wiping out private debt by inflating the money supply rather than production is the obvious easy solution if ya happen to be a Marxist. Cash for clunker toasters and microwaves must be at hand.
Lest anyone overlook the obvious, the game is to level the players not the playing field. Learn to think like a Marxist. I never expected the govt to wait for borrowing to pull us out of the recession. Cash for clunker everything is coming.
What you describe isnt Marxist, it is fascist: the joining of the corporations and government to rule over the people without freedom.
Charles
