Follow the Unemployment

Another  not-so-good jobs report today shows that unemployment is still rising.  The debt ceiling deal just adds to job destruction in the coming months.

More From Krugman–Macroeconomic Folly – NYTimes.com

You may not favor his progressive politics, but he is a first rate economist who reflects very basic and accepted economic analysis.

All of a sudden, people seem to have noticed that policy is moving in exactly the wrong direction. We’re getting headlines like this: Debt Deal Puts U.S. on Austerity Path as Economy Falters.

via Macroeconomic Folly – NYTimes.com.

Mark Zandi Thinks The Deal Will Be Great–Is He Lost In Space

Mark Zandi, Chief Economist of Moodys in a CNN interview, stated that the “debt limit deal” is amazing and really great and will solve all of the economic worries of our country and get our economy back on track. According to his effusive rant he said that all the private sector needs in order to restart hiring is the “deal.”

He ignores that consumers have cut back on spending, the government spending cuts have a negative impact on the economy and state and local governments and the housing market is in the tank.  Unbelievable, but true.

Most economists and prinicipal financial leaders agree that immediate reductions in spending will have a bad impact on our economy.

My friends, prepare yourselves for a multi-year stagnation in unemployment and growth in the US economy.