A very interesting video by an Irish economist explaining how the current reduce government spending ("austerity") approach to the Eurozone debt and currency crisis is doomed to fail. It is doomed because cutting government spending in a recession only makes the recession worse, which in turn, reduces tax collections which then makes the government deficits … Continue reading David McWilliams Explains Why Austerity Is Doomed In Europe
It's now Monday morning, Aug 8. It's been roughly 60 hours since S&P downgraded the rating on U.S. government bonds. In that 60 hours the media, particularly TV talking head channels, have been breathlessly awaiting what they felt was a certain market panic on Monday. Clearly interest rates would go up they said. They were … Continue reading The Market Shrugs Off Rating Downgrade, Market Is Worried About Real Economy.