January 24, 2008
Recession regression
Yesterday Ms. Rodham Clinton had some things to say about how American consumer spending is to blame for the "global economic crisis" that disrupted international equity markets beginning Monday and that ultimately, you guessed it: it's Bush's fault.
Today there's another explanation:
The huge losses in Europe on Monday -- which caused fright throughout the rest of the world -- probably were caused as much, if not more, by Societe Generale unwinding what had been a big long position [related to a securities fraud scheme] in Europe's top stock-market indexes than by any concern about the broader economy.(...)
That's not to say that the fears of a U.S. recession aren't valid. But the market's recovery from lows earlier this week hints that perhaps those concerns were overblown.
Hillary's rhetoric overblown? Naaah.
Economics and Markets Posted by JohnGalt at January 24, 2008 1:25 PM
Interesting link. There was much speculation on Kudlow & Co. last night that Trichet and the ECB will not follow the FOMC in easing because of current labor negotiations in Germany. If they signal any inflation, they will have to offer a more generous contract.
That, Senator Clinton, is another superb reason to have government less involved in regulating the market.
Posted by: jk at January 24, 2008 2:15 PM | What do you think? [1]