Free-Fallin’

As the economy continues to crumble beneath our feet, I’m left feeling that maybe, just maybe, this was not the best single time imaginable to quit my job.  I’m still perfectly confident that I’ll be fine, but still – it’s like not buckling your seat belt during rush-hour traffic just because you’re sure you won’t have an accident.  It’ll probably be fine, but not the best possible time to adopt the strategy.

Krugman brings us a bit of Monty Python-inspired economic humor:

The only thing we have to fear is fear itself. Fear and negative equity … The two things we have to fear are fear itself and negative equity, and the depleted capital of financial institutions…

and then, a piece that is quite a bit less humorous and more depressing about interest rate cuts.  At the heart of it, although left somewhat unsaid, is that I really don’t think that there’s much of anything that any President could do right now to “save the economy.”  As Krugman says, it seems like traditional monetary policy has simply lost any ability to alter the trajectory of, for instance, the stock market right now.  Which means, obviously, that any effective actions that the government takes have to be fiscal.  Another stimulus package, , some across-the-board tax cuts or rebates, or a massive bailout bill of the troubled firms on Wall Street.

Wait, what?  We’ve already done that?  Oh, shit.  We are fucked…

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