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What Does the Market Fear? It Fears a Double Dip

It s a Growth Scare  NYTimes com

Paul Krugman:

It's a Growth Scare: FTalphaville has been saying this all day, and it’s right. The action in the markets looks nothing like worries about US solvency; it looks exactly like what you expect to see when markets suddenly realize that the economy’s growth prospects look terrible. One more note: inflation expectations are plunging. Truly, our public discourse has been entirely about problems we don’t have, at the expense of dealing with the problems we do have.