From <>:
A bizarre complacenc: Even as the conventional wisdom seems to have converged on the view that despite the continuing willingness of bond investors to buy US debt at low interest rates, the deficit is terrible, scary, awful — you know we’re in herd behavior mode when phrases like “time bomb” start appearing in news stories — a weird complacency has settled in on the state of the actual economy. We’re recovering, everyone says — no need to do anything more.
Yet the outlook is extremely grim — not according to DFHs like yours truly, but according to the consensus of professional forecasters.... Disastrously high unemployment, persisting years into the future, combined with inflation consistently below the Fed’s 2 percent target (and I’d argue both that the prediction is too high and that the target is too low).
Why is this considered OK, as opposed to desperately requiring action? Bear in mind that the predicted unemployment rate in 2012 — 2012! — is higher than the rate that let Bill Clinton run on “it’s the economy, stupid”.
Because no one wants to admit exactly how wrong they've been until the Revolution has started?
Thanks, Paul!
DFH's forever,
S
Why is this considered OK, as opposed to desperately requiring action?
Posted by: Suzan | December 17, 2009 at 03:34 PM