Economists’ Tea Leaves Point to Recession David Leonhart, New York Times. Given the accuracy of economic forecasting, this may actually be a bullish signal.
Credit Crunch and Asset Deflation Recession Max Fraad Wolff, Huffington Post
Citigroup Will Support Six SIVs on Its Books Wall Street Journal. This development is no surprise; the bank will provide $3.5 billion in backup facilities.
The Debt-Jobs Tradeoff Greg Mankiw:
The NY Times reports:
administration officials are counting on a lift this summer from the $168 billion economic stimulus package that Congress passed last week and from the Federal Reserve’s recent decisions to reduce short-term interest rates….[CEA Chair Edward Lazear] predicted that the stimulus package would create an additional 500,000 jobs this year.
In other words, each job created adds $336,000 to the national debt.
Results like that make socialist programs like the FDR’s Civilian Conservation Corps look much more cost effective.