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Economy
See other Economy Articles

Title: Rob Johnson and Tom Ferguson on the Real Meaning of the S&P Downgrade and the Market Reaction
Source: Naked Capitalism
URL Source: http://www.nakedcapitalism.com/2011 ... e-and-the-market-reaction.html
Published: Aug 14, 2011
Author: Yves Smith
Post Date: 2011-08-14 11:32:43 by lucysmom
Keywords: None
Views: 5372
Comments: 8

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Begin Trace Mode for Comment # 8.

#1. To: Badeye, A K A Stone, hondo68, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mcgowanjm, Capitalist Eric, Mininggold (#0)

lucysmom  posted on  2011-08-14   11:34:14 ET  Reply   Untrace   Trace   Private Reply  


#2. To: lucysmom (#1)

"Classic Keynesianism" is how we got into this mess. Giving everyone who's not already on the dole, a government job, isn't going to fix it.

Hondo68  posted on  2011-08-14   12:12:20 ET  Reply   Untrace   Trace   Private Reply  


#4. To: hondo68, go65 (#2)

"Classic Keynesianism" is how we got into this mess. Giving everyone who's not already on the dole, a government job, isn't going to fix it.

Go65 is correct.

lucysmom  posted on  2011-08-14   12:19:33 ET  Reply   Untrace   Trace   Private Reply  


#5. To: lucysmom, hondo68 (#4)

And since December governments have cut spending and jobs, while the federal government has lowered taxes and cut spending relative to GDP.

Why aren't we seeing a massive recovery?

go65  posted on  2011-08-14   12:20:43 ET  Reply   Untrace   Trace   Private Reply  


#8. To: go65 (#5)

the federal government has... cut spending relative to GDP.

Complete and utter nonsense.

Let's look at the White House Office of Management and Budget numbers again.

Federal Spending as a percentage of GDP:

2010: 23.6%

2011 estimate: 25.3%

Spending is going up, not down.

jwpegler  posted on  2011-08-14   17:19:07 ET  Reply   Untrace   Trace   Private Reply  


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