Here it comes, boys and girls. We have a bad combination of things working against us - like Af-Iraq-Pak (plus the bonus of Israel prob'ly moving against Iran's nuke program soon), Gusher in the Gulf, allowing Unemployment Bennies to lapse, opposition politics, etc - this is all more than we need for the big slide into a real live depression.
From Calculated Risk:
Consumer Confidence Plummets In June
-and-
The Guardian:
Michael Tomasky
I think I understand a few things about what worked in the past to get us out of other tough spots, and while I certainly don't know exactly what'll work this time, I do know this one abiding universal truth: An economy can spend its way to oblivion, but it can't save its way back to prosperity.
Repubs will insist on cutting spending, but I'll bet dollars to donuts they won't be raising any taxes (unless of course they can do it as regressively as possible). Anyway, once you take away the huge chunk of demand that government spending creates, the cascade effect should kick in nicely and we'll be circling the drain in no time at all.
The reality of all this austerity talk.
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