Not much encouraging news on the economic front. The DOW set a twenty year low yesterday, people drawing unemployment checks hit 5 million and I am going to add myself to that list next week for the first time in my life. A wee bit depressing. Paul Krugman is not very encouraging this morning either and is forecasting a very long time before we see the clouds begin to part.
I could have used a little better forecast from Paul but I guess it is better than hiding your head in the sand and banking on the lottery to get you through.
So people at the Fed are troubled by the same question I’ve been obsessing on lately: What’s supposed to end this slump? No doubt this, too, shall pass — but how, and when?
To appreciate the problem, you need to know that this isn’t your father’s recession. It’s your grandfather’s, or maybe even (as I’ll explain) your great-great-grandfather’s.