Paul Krugman says it’s now even money we’ll have a lost decade like Japan.
Brad de Long says there’s a 5 percent chance of a Great Depression-like downturn, bigger than the one we’ve just experienced.
Martin Wolf says we’ve again missed the boat on speaking plainly to the Chinese.
Today’s numbers say that, despite wasting billions on cash for clunkers and home buying tax credits, deflation remains a big problem, the housing bust will continue, oh, and unemployment remains above 10%.
The need for action is very clear, but that’s not what our leaders are offering.
Instead, they seem worried about utterly trivial things, from an extra $100 billion/year to expand health insurance to social program deficits in the years after 2030.
Anything in the here and now appears to be well beyond their imaginations.
Goingbackwardville and Movingforwardville are currently intersecting in Oblivionville.
Congress should be passing a second stimulus, to the tune of at least $1 trillion ($2-3 trillion would be even better!), with emphasis on the following: job creation via a new WPA with emphasis on road building, home and corporate energy efficiency, and public transit, guaranteeing state government deficits for the next 3 years, and continuing unemployment and unemployed health care benefits for the next 2 years.
The President needs to start leading, not engaging in further meaningless rhetoric and cautious poll gazing.
Gorilla is worried: “Round tables don’t put food on the table, and pointy heads only burrow deeper into the sand!!!”