Paul Krugman’s War on Austerity

At a time when most people are saying the path out of the financial crisis and European debt problem is for individuals and governments around the world to cut back, Paul Krugman wants us to spend, spend, spend.

So how much we spend on supporting the economy in 2010 and 2011 is almost irrelevant to the fundamental budget picture. Why,

Stocks Rally Strongly, So What’s Next?

One day it’s fear and loathing, the next it’s hope springs eternal. We live these days with the stock market acting as a manic depressive. That’s nothing new,of course, as Warren Buffett has long characterized the equity market is such colorful terms. But lately it seems even more so, a fact made painfully clear by the rising VIX and by …

Is BP headed for Bankruptcy?

How low will BP stock go? Today’s guess: All the way to zero. Already, the oil spill in the gulf has caused BP shares to drop to $30 from $60. That’s a loss in total market value of $90 billion. Earlier on this blog, I sided with the camp that thought BP might be a buy, because its stock had fallen so far and another oil company might be …

Beige Book, Bernanke, And Our Wheezy Economy

There was a bumper crop of information and comment on the economy today. Federal Reserve chairman Ben Bernanke testified before the House Budget Committee and the Fed also released its Beige Book, which contains reports from the Federal Reserve’s district banks. On balance, the economy continues trudging through the great deleveraging, …

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