Recovery Summer

The Recovery Summer is well underway.

  • Vice President Biden sought to rally the troops in the Milwaukee stop of his Recovery Summer tour by noting: “there’s no possibility to restore 8 million jobs lost in the Great Recession.”
  • Today, a  sharp drop in the Conference Board’s Consumer Confidence Index have sent markets into a triple-digit loss.
  • Paul Krugman (New York Times) opines “We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression [following the Panic of 1873] than the much more severe Great Depression.”
  • The National Journal reports that in public opinion, “the cement is hardening.” Based on its Congressional Connection poll, “the sputtering economy, the unchecked oil spill in the Gulf of Mexico, two wars and a rough-and-tumble campaign season continue to take a toll on the public’s confidence in the government.”

Meanwhile…

  • As Congress pushes forward with the most significant financial reforms since the Great Depression, Dan Alamariu at Foreign Policy predicts “The reforms currently debated in Congress represent only the opening salvo of a larger reform process that will take years to complete and whose outcome will be both unexpected and more stringent on financials than the currently debated legislation.”
  • The White House continues to push ahead with discussions on climate change policy with a meeting scheduled for today. The Hill reports: “Tuesday’s meeting with Obama may lay the groundwork for Reid to craft a legislative strategy for trying to get 60 votes this year on an energy and climate plan.”

Although Krugman draws analogies between 2010 and 1933, things feel a bit more like 1937.

One thought on “Recovery Summer

  1. While I too worry about a repeat of 1937, the big difference seems to be that Bernanke and the Fed better understand how to deal with the monetary side of the equation than their predecessors.

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