mm337: Dare we trust those who messed up to fix it?

April 3, 2008

MUDGE’s Musings

I can’t help it — our turbulent economic news continues to cause concern.

And, as we’ve pointed out, it’s increasingly top of mind most everywhere.

As a topic, it has appeared here with depressing regularity (depressing topic but lively and insightful commentary, of course!):

“May you live in interesting times”

mm335: Are you prepared for interesting times?
mm334: Rearranging deck chairs
mm333: “Great people shouldn’t have a resume”
mm331: Obama at Cooper Union: Lincoln?
mm328: Today’s economics lesson: Depression 101
mm309: The news Bush really hates you to hear
mm289: Recession: Paying the price for our power
mm285: Mayor Mike tells some hard truths
mm263: This man -so- wants to pull the trigger…
mm257: The R-Word – Not that racy television show
mm256: I don’t hate big corporations, either

Pointed here by American.com here’s a useful analysis that lays out the causes of the financial system’s deep crisis, and you might be surprised at the source: St. Alan Greenspan and the Federal Reserve that, directed by Greenspan’s successor, Ben Bernanke, now is portraying itself as our white knight.

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mm309: The news Bush really hates you to hear

March 8, 2008

MUDGE’s Musings

The ‘R’ word: recession. It’s pretty much inescapable now. The Wall Street Journal was among all the major media to let us know:

wallstreetjournal

Jobs Data Suggest U.S. Is in Recession

Largest Payroll Fall In Five Years Spurs New Stimulus Talk

By SUDEEP REDDY March 8, 2008; Page A1

U.S. employers shed 63,000 jobs last month, the most in five years, reinforcing a widening view that the U.S. is falling into recession. Among economists and politicians, the debate is shifting to how deep the downturn will be and how to ease it.

The jobs dropoff came after the nation lost 22,000 jobs in January, the Labor Department said. In the past, such back-to-back monthly employment declines have occurred only around recessions.

Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 points Friday to close at 11,893.69. The index lost 3% for the full week.

By far the most distressing feature of this distressing development is that the dimension of the job loss was such a surprise, especially to the guys who are paid good coin to anticipate such news, economists.

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mm289: Recession: Paying the price for letting our power bleed away

February 18, 2008

MUDGE’S Musings

Distracting as the events of the day can be, when we get right down to it, the dire rumblings of our deteriorating economic state cannot be deflected for long.

Almost official

Last Thursday, our scholarly if modestly effective Chairman of the Federal Reserve, Ben Bernanke, finally said what he’s been hinting at for months: the economy hasn’t seen the floor yet.

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