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Wednesday Open Thread | 67 comments (67 topical, editorial, 0 hidden)
Re: Wednesday Open Thread (4.00 / 5)
Austerity Games, Here And There - Paul Krugman - NYTimes.com

Meanwhile, in Britain, via Yves Smith, people have been digging into the details of the government forecast, and finding that it relies on the assumption that household debt will rise to new heights relative to income:

UK Office of Budget Responsibility

Why? Because the only way the economy can avoid taking a hit from government cuts is if private spending rises to fill the gap -- and although you rarely hear the austerians admitting this, the only way that can happen is if people take on more debt. So we have the spectacle of a government that inveighs against the evils of debt pinning all its hopes on an assumption that over-indebted households will dig their hole even deeper.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Mar 30th, 2011 at 10:39:55 AM EST
Re: Wednesday Open Thread (none / 1)
Orange Satan - bobswern - Stunning Barofsky NYT Op-Ed: Geithner Mismanaged TARP, May Have Damaged Entire Gov't's Credibility

Today is TARP (Troubled Asset Relief Program) Inspector General Neil Barofsky's final day in office. He's going out with one hell of a bang in an op-ed in Wednesday's NY Times, saying many things many people in this community--including yours truly--have been saying for years. Interesting thing is, IMHO, many other folks that are highly respected among those in the Democratic wing of the Democratic Party are also a part of this chorus nowadays.

You'd think the folks in D.C. would get a clue; but don't hold your breath.  To those in power, it's all about the spin. (See further down below for more on this.) Having spent most of my adult life working in and around the media/media technology and communications industries (in the corporate sector as well as doing professional gigs for more than 25 Democratic candidates and officeholders, from city council races to national campaigns), I can tell you, having seen it play out on countless occasions, when spin crosses the line of credibility one too many times, it's all downhill from there.

Barofsky's last couple of paragraphs (if you haven't used up your 20 "free" monthly article views in the first 36 hours since the NYT switched over to pay-per-view, you really should checkout the whole piece) are immediately below.;-

Haven't read the article yet. Maybe one of the economic gurus should do an informed LQD on it. I can help if someone can't access it.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Mar 30th, 2011 at 10:58:32 AM EST
[ Parent ]
Re: Wednesday Open Thread (none / 1)
bobswern finishes with this conclusion;-

We live in a time of serious disinformation being the rule of the day when it comes to "news" about our nation's economy.

Don't focus upon the rapidly declining values of the primary asset of most of this nation's middle class. Instead, we should focus upon the stock market
[....]
Why take commentary from someone such as the outgoing Inspector General of our nation's TARP program at face value when there's a meaningless quote to be gleaned from a Treasury Department press release to contradict it?

It's all about the spin. Yes...just sit there on Main Street reading this...and remember the messages we're hearing from inside the Beltway (as someone used to "explain" it to me with their extended middle finger pointed at someone else with whom they were upset): "Just sit and spin!"

You really should read this diary, and the NYT article it refers to. It may be about the USA, but it's really about the UK, Ireland etc. It's about our elites are doing almost everything possible to ruin the lives of all but themselves.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Mar 30th, 2011 at 12:41:48 PM EST
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Re: Wednesday Open Thread (none / 0)
It's about our elites are doing almost everything possible to ruin the lives of all but themselves.

And this is news??

They tried to assimilate me. They failed.

by THE Twank (yatta blah blah @ blah.com) on Wed Mar 30th, 2011 at 03:45:11 PM EST
[ Parent ]
All together now ... (none / 0)
Geithner Mismanaged TARP, May Have Damaged Entire Gov't's Credibility

What credibilty?!!

They tried to assimilate me. They failed.

by THE Twank (yatta blah blah @ blah.com) on Wed Mar 30th, 2011 at 03:47:17 PM EST
[ Parent ]
Re: Wednesday Open Thread (4.00 / 2)
This is also the mechanism by which the Growth and Stability Pact caused the private credit bubbles in deficit countries, by arbitrarily constraining public finances.

In the UK, Gordon Brown's self-imposed "golden rule" also had the same effect.

So, in what may be my last act of "advising", I'll advise you to cut the jargon. -- My old PhD advisor, to me, 26/2/11

by Carrie (migeru at eurotrib dot com) on Wed Mar 30th, 2011 at 11:00:05 AM EST
[ Parent ]

Wednesday Open Thread | 67 comments (67 topical, 0 editorial, 0 hidden)
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