Tuesday, June 09, 2009

They Don't Hand Out Those Nobel Prizes For Nothing ...

Maybe Team Obama should be listening (harder, more) to this guy;

Nobel Winner Krugman Sees U.S. Recession Ending Soon (Update1)

The U.S. economy probably will emerge from the recession by September, Nobel Prize-winning economist Paul Krugman said.

“I would not be surprised if the official end of the U.S. recession ends up being, in retrospect, dated sometime this summer,” he said in a lecture today at the London School of Economics. “Things seem to be getting worse more slowly. There’s some reason to think that we’re stabilizing.”

U.S. stocks erased an earlier decline after Krugman made his comments. The Standard & Poor’s 500 Stock Index was little changed at 939.14 at 4:07 p.m. in New York after slumping as much as 1.5 percent earlier, and the Dow Jones Industrial Average gained 1.36 points to 8,764.49.

Krugman, a Princeton University economist, has warned recently that the U.S. government hasn’t done enough to help the country’s economy recover. Last month, at a conference in Abu Dhabi, he said the fiscal stimulus is “only enough to mitigate the slump, not induce recovery.”


Even with a recovery, “almost surely unemployment will keep rising for a long time and there’s a lot of reason to think that the world economy is going to stay depressed for an extended period,” Krugman said.

The unemployment rate jumped to 9.4 percent in May, the highest since 1983, partly reflecting more people joining the labor force to look for work.


The Fed’s swollen balance sheet is “a little alarming. In the long run you really don’t want the central banks to be so involved in the business of lending,” Krugman said. “But it’s arguably necessary” even if there are questions about “where does it stop?”
Dig "U.S. stocks erased an earlier decline after Krugman made his comments ..."

Hmmm ... I wonder if Secretary of the Treasury Timothy "What's that, Lassie? (Woof, woof!!) Timmy Geithner's in the well?!!" Geithner is already formulating a plan, to intravenously feed Krugman caffeine, and then have the FCC clear a channel for him to be speaking 24/7, if his comments are going to make Wall Street jump.

Bonus Krugman

Three Cheers For Nobel Prize Winner Paul Krugman!

A Tale of Two Gippers

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