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The Sum of Some Fears: PAUL KRUGMAN; Dozens of Afghan civilians die in Nato airstrikes +
by PAUL KRUGMAN - THE NEW YORK TIMES
27 Jul 2007
KRUGMAN: The economic expansion that began in 2001 has yet to produce any significant gains for ordinary working Americans. And now it looks as if it never will.
THE COMPLETE ARTICLE AND MORE
The Sum of Some Fears: PAUL KRUGMAN - Market Freakout
THE COMPLETE ARTICLE
THE NEW YORK TIMES
The Sum of Some Fears
By PAUL KRUGMAN
Published: July 27, 2007
The economic expansion that began in 2001 has yet to produce any significant gains for ordinary working Americans. And now it looks as if it never will.
Yesterday’s scary ride in the markets wasn’t a full-fledged panic. The interest rate on 10-year U.S. government bonds — a much better indicator than stock prices of what investors think will happen to the economy — fell sharply, but even so, it ended the day higher than its level as recently as mid-May, and well above its levels earlier in the year. This tells us that investors still consider a recession, which would cause the Fed to cut interest rates, fairly unlikely.
So it wasn’t the sum of all fears. But it was the sum of some fears — three, in particular.
The first is fear of bad credit.
Each new peak in oil prices was met with declarations that it was all speculation — like the 2005 prediction by Steve Forbes that oil was in a “huge bubble” and that its price would be down to $35 or $40 a barrel within a year. And on the other side, as recently as this January, National Review’s Buzzcharts column declared that we were having a “pop-free” housing slowdown.
I didn’t think many people believed this stuff, but the market’s sudden freakout over housing and oil suggests that I was wrong.
Posted by CRIMES AND CORRUPTION OF THE NEW WORLD ORDER NEWS mparent7777 Marc Parent CCNWON
Labels: class, housing, income, Markets, New York Times, PAUL KRUGMAN, Stock Market
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