Paul Krugman sees some signs of hope -- and reassurance for Obama.
... There are reasons to think that we’re finally on the (slow) road to better times. And we wouldn’t be on that road if Mr. Obama had given in to Republican demands that he slash spending, or the Federal Reserve had given in to Republican demands that it tighten money. ...NYT
Two important factors: a decrease in privately-held debt and notable improvement in the housing sector. That improvement will tend to give consumers the boost they need to start consuming again.
On the negative side is uncertainty in Europe and this important consideration:
We have failed to provide significant mortgage relief, which could have moved us much more quickly to lower debt. And even if my hoped-for virtuous circle is getting under way, it will be years before we get to anything resembling full employment. ...NYT
And a possible killer of recovery?
... If this year’s election brings the wrong ideology to power, America’s nascent recovery might well be snuffed out. ...NYT
Republicans want to follow in Europe's footsteps, cutting interest rates and federal spending. If they're allowed to do that, we'll be in the mess Europe is in. Simple as that.
I'm convinced that the Republicans would rather bring us down than admit to having been, not just wrong, but the perps who took us to the edge, causing the financial crash and the recession. They've shown themselves willing to go for broke -- literally! -- rather than fine-tune their economic policies.
