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
One area I haven't commented on much is the ongoing European "debt crisis". The Greek debt crisis is a part of it, but it's only the tip of the iceberg. The roots are much deeper. One reason I haven't commented is because it's fairly complex and requires a lot of background explanation which I haven't … Continue reading Warning: More Bank Bailouts Possible
The Baseline Scenario concludes with a warning that Goldman must be dealth with: And the US government, at the highest levels, has to ask a fundamental question: For how long does it wish to be intimately associated with Goldman Sachs and this kind of destabilizing action? What is the priority here - a sustainable recovery and … Continue reading Why do we always find Goldman, Sachs where there’s trouble?