At the same time, Representative Nancy Pelosi of California, the former speaker and current Democratic leader, was noncommittal about the plan, suggesting that Democrats might not rally behind it. (NYT, 8/1/2011)
If Obama has lost Pelosi, there is no hope left for him.
Worst of Times
The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record. (Paul Krugman, NYT, 8/1/2011)
'Single Note' Krugman keeps at it. Let's see how the markets view the confidence thing....
European and Asian financial markets heaved a sigh of relief Monday over the last-minute agreement in Washington to raise the U.S. debt limit, shrugging off for now the lingering concerns about longer-term global growth prospects and the debt crisis in the euro-area. Stock markets rallied across the region on news that U.S. policy makers had reached the framework for a budget deal that would clear the way for an increase in Washington’s borrowing limit and could help avert a default... The Euro Stoxx Europe 600 Index rose 0.7 percent in London by Monday afternoon and the FTSE-100 added 1.4 percent. The benchmark Standard & Poor’s 500 futures contract rallied 1 percent, setting the tone for a stronger opening on Wall Street. (NYT, 8/1/2011)
Ooops!
Given the stock market performance yesterday and today are you retracting this one?
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