What Would I Have Done?
August 1, 2011, 11:01 am
I would have made a statement declaring that giving in to this kind of blackmail would constitute a violation of my oath of office, and that my lawyers, on careful reflection, have determined that there are several legal options that allow me to ignore this extortionate demand.
Now, the Obama people say that this wasn’t actually an option. Well, I hate to say this, but I don’t believe them.
It’s much, much too late for Obama and co. to say “Trust us, we know what we’re doing.” My reservoir of trust is now completely drained. And I know I’m not alone.
Where’s My Relief Rally?
August 1, 2011, 11:05 am
Weren’t we supposed to have a big rally in the stock market now that the threat of default was past and our deficit was on the way to being solved?
Dow down 77 at the moment. And long-term interest rates – a barometer of hope or lack thereof in recovery – have fallen to 2.73 percent.
Mr. Market is apparently underwhelmed.
Meanwhile, in the Global Economy
August 1, 2011, 11:37 am
Bad news all over. In the US, Manufacturing growth hits lowest level in 2 years. In Europe, my favorite current indicator of the eurozone crisis, the Italy-Germany bond spread, has blown out again. And while part of this is due to falling German rates – which, like falling US rates, reflect growing pessimism about growth – the Italian bond rate is once again at 6 percent, a level that invites a self-fulfilling debt spiral.
Oh, and in Britain, poster child for wonderful expansionary austerity, we have this:
For the fifth consecutive month, the manufacturing sector has disappointed expectations. In the past six months, the headline composite index has crashed by 12.5 points, a record only exceeded post-Lehman in 2008. Output has been slightly better behaved over the past few months, but July’s 2 point decline to 50.6 leaves it slightly below May’s trough. Worryingly, the temporary supply-chain disruptions that depressed output in May appear to have eased, indicating that July’s weakness might be more structural.
I’m so glad we have a deal that will bring the confidence fairy to our rescue!
If I Were In The House
August 1, 2011, 11:55 am
I guess I have to be explicit at this point: yes, I would vote no.
(T)he people who claim that terrible things would immediately happen in the markets also claimed that there would be a big relief rally once a deal was struck. Not so much: the Dow is down 121 right now.
(T)he idea that a temporary disruption would permanently damage faith in US institutions now seems moot; if you haven’t already lost faith in US institutions, you’re not paying attention.
This guy knows nothing. It’s only a fucking Nobel Prize in Economics.
Barack Obama has a Peace Prize! So there.