It looks very likely that the bailout plan being put together to save GM and Chrysler might fail. There is stiff resistance among the ranks of Republican Senators for any kind of bailout, and even those who do support helping the car makers are looking for stronger guarantees to protect taxpayer money. Another bone of […]

Just a heads up everyone: here is a short essay by Brad DeLong to get your juices going. He’s a favorite of mine: DeLong at Project Syndicate He reinforces the need for ‘old fashioned’ Keynesian policies. I hate the use of the phrase “if depression is to be avoided”. Have we really reached that point? […]

Guys: this is not good news. The days of zero yields have arrived. Here’s the news from the New York Times: As Markets Waver, Treasury Yield Turns Negative This presents a major problem. First it renders the Federal Reserve Board much less effective. Traditional monetary policy, as executed by the FRB, includes cutting interest rates […]