Daily Investment Interpretations
June 27, 2010
the G20 meeting in Toronto this weekend, U. S. Treasury Secretary
Timothy Geithner sang the same song that Paul Krugman was singing a year
(1) once the central banks have fired their last shot by lowering interest rates to zero, governments must spend during a "super-recession" in order to restore consumer confidence, and restart the engines of growth, and
(2) that the present stimulus package is inadequate, and additional fiscal stimulus will be needed to pull our oxen out of the ditch: The G20 quandary – keep spending or start trimming deficits, G20 walks tightrope between growth, deficits, and Harper and the G20 tension between the US and Europe.
These articles also sound Dr. Krugman's theme that Europe plans to piggyback off the U. S. recovery, and sock it to the American taxpayer to pull Europe back to prosperity.
leaders know all this, and they're certainly brilliant and blessed with
good judgment. What's their side of the story? Unfortunately, I don't
know quite where to find it.
This article, Stocks sense the plague is coming (back), replicates the story that Paul Krugman has told: "The Group of 20 nations summit in Toronto reminds us why the outlook for jobs and global growth, as well as for markets, gets darker by the minute."
Market futures are slightly up tonight.