Aug. 3 (Bloomberg) — Economists Alan Blinder and Mark Zandi say fiscal and monetary stimulus measures taken by the U.S. government staved off a depression. Stanford University economist John B. Taylor disagrees.
“The totality of the response was impressive and ultimately successful,” Zandi, chief economist at New York- based Moody’s Analytics Inc., said yesterday in a radio interview on “Bloomberg Surveillance” with Tom Keene. “It brought an end to the recession much more quickly than otherwise would have been the case.”
I had this report last week, as it was being circulated in Congressional Offices. My read of it produced guffaws of laughter, as the central premise – that one can drink oneself sober – is just continuation of the general Keynes BS that underlies general fraudulent bubble economics. As such I wasn’t going to bother with a Ticker on it.
But since Bloomberg thinks they should write on it, deeming it “news”, ok, I’ll play.
“Stimulus” did a lot of good? Well sure, temporarily. But heh, let’s look at the reality of the claim, eh? Here’s the chart again:
And before you say “but look at that improvement!” I will simply note that a real growth rate of ~-9% isn’t anything to crow about, especially when one considers that this is on estimates through December, and odds are the “actual results” will be worse!
The real problem remains as it was in 2003 – the impossibility of withdrawing the debt-ponzi game without causing an immediate collapse in the economic picture. This is exactly identical to the drunk who says “it’s all fine” so long as there are bottles of whiskey in the case on the floor in front of him – never mind that he’s so bombed he can’t move beyond his bed and needs a pan to use the bathroom.
Nothing surprises me in the “Halls of CONgress” any more, nor do self-serving circle-jerk handwaving garbage like this so-called “report.” It provides cover to the Congressional idiots, of course, but then again how many times have we seen this among the proletariat of late?
People claiming that “it’ll all be ok” while on Funemployment, replete with $300 electric bills (blasting the AC at 72 in 100 degree heat), iPhones with $100/month service plans and $100 monthly “cable TV”.
Just like those folks, however, we’ll see how Scream Theater plays when the borrowing tit runs dry for the government.
Those who say it won’t? Well, they might be temporarily right – but if they are, it’ll be due to a collapse in equity prices.
That’ll be fun.