Friday, February 6, 2009

The silver lining in 7.6% unemployment

This is going to get so much worse.   But as bad as it is the upside is that it further marginalizes the conservatives who are standing on what they'd like to call principal in opposing stimulus spending.   While the House GOP celebrates doing nothing we've got over  a trillion dollars of demand coming out of the economy annually as we bleed half a million jobs a month. There will be no quick turnaround.  In response the economic flat earthers are peddling the same trickle down snake oil we've had for most of the last 30 years.  Lowering capital gains tax or abolishing inheritance taxes  is an ideological bias held by people who stand to benefit financially from it and should not be confused with an actual effort to respond to our situation.

The real danger here is that this package is too small.  Way too small.   China wont likely be loaning us this kind of money again and considering the Fed is essentially  giving cash away for nothing we're desperately close to having no other options.  I'm looking for a good recipe for squirrel stew.

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