Calculated Risk see things possibly stabilizing.
Europe appears to have the resources to resolve the crisis, but they lack the mechanisms and the political unity. The clock is ticking.In the U.S., the September data was mostly better than in August.
Read the whole point with graphs, Summary for Week Ending Sept 30th.
It seems that now everything depends on the political climate. Can the Europeans show the solidarity needed to move toward greater unity? Can the US Congress cooperate to keep the deficit large enough to continue the stabilizing trend?
Big if's. There is also a lot of deflationary downdraft globally that is creating headwinds. Still a very tenuous situation. However promising some ket factors look, effective demand still sucks.
1 comment:
Calculated Risk is one of the best economic bloggers. If anything, however, he's been a little too optimistic over 6-7 years I've been following him.
The politics in the U.S. are obviously messed up, with the Republicans determined to see the economy in tatters in the election year of 2012.
Even if European politics rise to the challenge, the damage has already been done, as the deflationary effects of austerity have apparently spread globally.
Sadly, there is not yet even an opposition party that provides hope for restarting the economy. Rather, there is the simmering rage of an impotent middle class. I predict that some enterprising young politician will soon get out in front of this, and then there will be hope for improvement....
Post a Comment