Antique Map Africa wallpaper circa 1590
Retailers Buoyed by Strong Holiday Start, which is good for a momentary feeling of confidence. A good Black Friday distracts from the housing, credit and currency crisis. Commenting on this story, Wake up to the dangers of a deepening crisis, by Lawrence Summers – Financial Times, Economist’s View notes, Do We Need Another Rate Cut?
With respect to traditional stabilization policy, monetary and fiscal policy lags are fairly long. Because of that, past policy responses will govern our immediate future – it’s too late to do much now – and anything done now to change monetary or fiscal policy won’t be felt with any force until sometime in the future. Thus, given the growing uncertainty about the future course of economic growth, effective risk management points toward taking actions today to reduce the potential for a catastrophic outcome of a deep and prolonged recession at some point in the future.
Besides the failed nations, increasing the number of militants in the Middle-East, a lousy environmental record, out of control health-care costs and deeper economic disparity the Bush legacy might well include years of inflation or recession. Yet in the delusional world of conservatism where they still think they’re the party of values they also still think they’re the party of fiscal responsibility. This one is easy as far as predicting the course of the right-wing noise machine. A democrat will most likely be in the Whitehouse in 2009 and the lousy economic conditions will be blamed on Democrats. So the grand tradition of Bush and his supporters of never acting like grown-ups, never taking responsibility for anything will continue. What a surprise, once again Conservative economic policy that worships at the alter of irresponsible tax cuts for the wealthy and trickle down wishful thinking will be paid for by the middle-class.