Skip to main content

View Diary: "Brown Effect" Threatens ENTIRE ECONOMY! (16 comments)

Comment Preferences

  •  Snark or not, the market is correct (1+ / 0-)
    Recommended by:

    The sell-off is probably due more to China tightening credit than anything, but China tightening credit has the same economic effect that Brown's election will if manages to achieve his goals of preventing any further stimulus program and insisting on government spending cuts to balance the budget.

    Unlike most Republicans (and unlike apparently everybody at Fox), managers of mutual funds and other big money managers have generally taken and passed Economics 101.  And anybody who has done that knows that tightening credit and cutting government spending are exactly the WRONG things to do when the economy is already slow.

    I'm normally very much of a deficit hawk, but these aren't normal times -- not even close.  The long-term deficit is indeed a problem, but it's a problem that it would be suicidal to tackle before the world economy is back on its feet, and with as deep a hole as it was in, that's not going to happen overnight.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site