From Zero Hedge: It’s official: the double dip is here. Goldman’s Jan Hatzius just lowered his GDP forecast for 2011 from 2.5% to 1.9% (kiss goodbye all those 93 EPS estimates on the S&P), increased his unemployment forecast from 9.8% to 10.0%, boosted his inflation expectation from 0.4% to 1.0%, and said that QE lite [...]
First, a bit from the Wall Street Journal: The old bogeyman of deflation has re-emerged as a worry for the U.S. economy. Here’s something else to fret about: After studying more than a decade of deflation in Japan, economists have slowly realized they have no idea how it works. The Powers That Be have been [...]
The usually very smart Ambrose Evans-Pritchard notes that previous statements by Federal Reserve Chairman Ben Bernanke indicate that if, as is now expected, we are tipping back in to recession, we can expect massive money printing at the Fed to shore up the economy. Evans-Pritchard thinks this is a good idea: …The only plausible escape [...]
We’re all Goldman Sachs. Yes, I linked to this at Blogs for Victory, too. It should be linked everywhere. Required reading in schools. Force Congress to enact a resolution praising the author. That kind of thing. Yes, its that important for us to understand. Food prices rise. Because its not important for the average person [...]