How long have I been saying things like “If the economy is so wonderful, then how come we have pathetic job growth/oil prices are at a record high/gold prices are rising/Joe Average has it so tough?” Suddenly people agree with me.
First, Merrill Lynch said we entered a recession last quarter. Then Goldman Sachs said we aren’t there yet, but recession is coming. They noticed some disturbing trends in the employment and job creation numbers. Finally. Goldman Sachs is where people like Robert Rubin and Jim Cramer learned to play the game; they didn’t survive this long by not knowing what they are talking about. If you prefer lots of charts and analysis, here’s Menzie Chinn at Econbrowser. Non-economist Barbara Ehrenreich replied to the whole brouhaha with a resounding “Duh.”
In fact, the UN thinks a worldwide recession is on the way, and the Christian Science Monitor reports that the “credit crunch” might could indeed be bad for the economy all around the world.
Of course not everyone agrees. Some Wall Street economists still think everything is great (as long as, please, you don’t look at the financial sector). President Bush thinks everything is great, and we need to make sure of it by implementing more tax cuts.
Speaking of that pesky financial sector, it looks like Bank of America may rescue Countrywide by acquiring it. May we live in interesting times.
In closing: telecoms cut off FBI’s [warrantless] wiretaps for non-payment of bills not anything important like, say, the Fourth and Fifth Amendments; Blackwater needs lobbyists; how are the new Congressmen doing?; a Kindergarten security risk; most Americans don’t like globalization; trading tips from the BondDad; and finally, Neko City.