Things To Chew On A Saturday Morning (Vol. 4)


With economic activity contracting in 2009’s first quarter at the same rate as in 2008’s fourth quarter, a nasty U-shaped recession could turn into a more severe L-shaped near-depression (or stag-deflation). The scale and speed of synchronized global economic contraction is really unprecedented (at least since the Great Depression), with a free fall of GDP, income, consumption, industrial production, employment, exports, imports, residential investment and, more ominously, capital expenditures around the world. And now many emerging-market economies are on the verge of a fully fledged financial crisis, starting with emerging Europe.
the U.S. financial system is de facto nationalized, as the Federal Reserve has become the lender of first and only resort rather than the lender of last resort, and the U.S. Treasury is the spender and guarantor of first and only resort. The only issue is whether banks and financial institutions should also be nationalized de jure.

(source: Nouriel Roubini for


By the way, since when does leaving a third of the troops on the ground count as a pullout?

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Agent provocateur and an occasional scribe.

5 thoughts on “Things To Chew On A Saturday Morning (Vol. 4)”

  1. PS: A bit of information I found particularly interesting, was this: “Of last year’s $100 billion tax cut, only 30% was spent and the rest saved.”

  2. @Dr. Fil: Interesting bit about the saving of 70% of the tax cut. I was always taught the wisdom of “saving for a rainy day” but isn’t that here already?

    Happy Saturday!

  3. Ian’s birthday today. Curry for all tonight! Course I’ll have a wonderful Saturday (even though I’m working). Have a fine one yourself. I WILL see you soon.

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