Tuesday, September 15, 2009

Think Obama Can Finance His Budget AND ObamaCare?

If you do, then you better think again.

Janet Yellen, Fed Pres/SanFran:

...Much of the recent economic data suggest that the economy has bottomed out and that the worst risks are behind us. The economy seems to be brushing itself off and beginning its climb out of the deep hole it’s been in. That’s the good news.

But I regret to say that I expect the recovery to be tepid.

... In particular, the unemployment rate will remain elevated for a few more years, meaning hardship for millions of workers.

...My own forecast envisions a far less robust recovery, one that would look more like the letter U than V. ... A large body of evidence supports this guarded outlook. It is consistent with experiences around the world following recessions caused by financial crises. That seems to be because it takes quite a while for financial systems to heal to the point that normal credit flows are restored. That is what I expect this time

Obama's budget (not yet voted on in D.C.) projects 4% GDP growth for the US beginning in 2010. It's a dope-smoker's projection; that rate of growth is unprecedented in non-war economies (and by "war" we mean WWI/WWII-sized stuff.)

It won't work.

HT: Calculated Risk

2 comments:

  1. Hey dad, where the hell where you when Bush jacked up the budget for essential useless crap and neocon fantasies. Now Obama has to clean up the mess.

    You and the rest of the tea baggers lack all legitimacy.

    ReplyDelete
  2. Dear Stupid,

    I was Dead-Set Against GWB's fantasylands, too.

    Next time you comment with 'teabaggers' you'll be deleted.

    ReplyDelete