Friday, August 14, 2009

24/7 Wall St.: We Don’t Need More Stimulus | Newsweek Business | Newsweek.com

All of the revisions of the last month, particularly the ones of the most recent week, are a strong signal that the Administration's numbers, which just a few months ago were considered magical thinking, have some chance of coming true. The size of the deficits may end up being smaller than many economists have expected and the relationship of the deficit to GDP may not be as bad as most forecasts indicated just a month ago. This may seem like a leap of faith, but it may also simply be a swing of the pendulum from late 2008 when some well-regarded economists believed that there was a reasonable chance that America would go through another Great Depression. A March CNN poll showed that the fear of the economy falling apart completely went well beyond pessimist experts. Forty-five percent of those questioned believed that another depression was likely within a year. Those numbers would almost certainly be sharply different if the poll was done today.
24/7 Wall St.: We Don’t Need More Stimulus | Newsweek Business | Newsweek.com
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