by Smitty
The Federal Reserve holds interest rates where they are for an ‘Extended Period‘, and the Dow holds itself above 11k. One person in three thinks the country is one the right track, which may or may not be related to Fed policy.
Across the pond, Spain joined Portugal and Greece in the downgrade club. If words themselves could do the trick, Greece would be leading the way out of the pit, emphasis mine:
Speaking during a cabinet meeting Wednesday, Greek Prime Minister George Papandreou said that every EU member must “prevent the fire that intensified through the international crisis from spreading to the entire European and global economy.”
Papandreou insisted Greece was determined to bring its economy into order. “We will show that we do not run away. In difficult times we can perform — and we are performing — miracles,” he said, adding that “our government is determined to correct a course that has been followed for decades in a very short time.”
Via Blogprof, Peter Schiff, who is campaigning to replace Chris Dodd, rhetorically dribbles James Galbraith on the subject of debt like a California State check:
Let Galbraith eat cake.
Meanwhile, the Republicans appear to have decided that the havok to be wreaked by Dingy Hairy’s financial regulatory reform bill is less than the threat of an all-nighter trying to keep it off of the Senate floor.
Senate Minority Leader Mitch McConnell, Kentucky Republican, said there had been a “key agreement reached”.
He cited “assurances” from Senate Banking Committee Chairman Chris Dodd, Connecticut Democrat, that he would remove provisions in the bill that the GOP believes will lead to excessive risk-taking by financial firms requiring more bailouts.
Reached for comment, Bart Stupaka Democrat was nearly overheard saying that anything less that a privately signed Executive Order wasn’t worth the condom in which it was delivered.
Look, the Constitutionally legitimate Federal spending is less than half the budget. More dismal analysis here. Veering in the direction of something tasteless, one wonders how much personal, physical risk Mr. Galbraith would undertake in support of his “What, me worry?” analysis of the threat to the US economy. Strictly as a thought experiment, would he seriously bet his own future as cheerfully as he risks that of others, if the negative feedback touched him personally?
Determination to ‘bring the economy into order’ occurs when the budget submitted has a gazoutta less than the gazinta. It will also happen when the Federal government is confined to Federal tasks. There are too many Galbraithians holding office today.
Reached for comment on the outlook, Tim Geithner was saturnine about the economy:
