February 3, 2009
markets rose today. The NASDAQ
Composite added 18
to close at 1,516,
the Dow tacked on 141.53
to end at 8.078,
and the S&P
climbed slightly to $41.03,
gave up $14.70
to close at $892.50.
We'll start with yesterday's and today's comments by
Permanent Link to Protectionism and stimulus (wonkish)
Permanent Link to Disappearing dark matter
Permanent Link to I do not think that word …
Permanent Link to Depressing economics
I think that this comment deserves special attention.
Dr. Krugman is concerned about the number of influential economists who
seem to be ignorant of the lessons of the Great Depression and the
Japanese "lost decade". He concludes, "So
yes, we can have another depression — because those who refuse to learn
from history may be condemned to repeat it."
Permanent Link to More on protectionism (wonkish)
Permanent Link to Housekeeping note
Permanent Link to Social Security hysteria lives
Permanent Link to Lemon credit
Permanent Link to Paradox of thrift
This also deserves special attention. Dr. Krugman
points out that our new-found thrift (Americans' saving more, spending less),
praiseworthy as it may be on an individual basis, may be leaving household
balance sheets worse than ever... like everyone selling their stocks at
the same time, driving down the value of their remaining investments.
Permanent Link to Bipartisan bromides
Dr. Krugman cites the "utterly different economic
doctrines" of Democrats and Republicans, stating, "Republicans
believe in a doctrine under which tax
cuts are the universal elixir, and government spending is almost
Dr. Krugman's Monday editorial is entitled Bailouts for Bunglers.
I think it possible that we could see the stimulus plan
thwarted through political gridlock over opposing economic philosophies.
It would seem to me that the Republican party would profit if the Obama
Administration fumbled an economic recovery, and that, shy of blocking
fiscal stimulus programs, Republicans would have an opportunity to drive
hard bargains in return for sufficient bipartisan support to pass the
stimulus packages. I'm not saying that the Republican Party would put the
interests of the Party above the interests of the nation. I'm only saying
that there would seem to me to be some rewards for the Republican Party
for playing "hard to get".
Some other interesting articles are:
Jaffe: Government's stimulus plan won't arouse consumer spending
Kellner says Washington doesn't get it
Ashbaugh says S&P stuck
Mark Hulbert writes, Was that a Dow Theory sell
Ben Stein puts professional advice in perspective in Financial
Gurus: They're Only Human.