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Discussion: (4 comments)

  1. MacDaddyWatch

    “ITS DIFFERENT THIS TIME.”

    This time there was no real recovery in spite of a big GDP plunge. Normally the recovery’s right side of the “V” mirrors the steepness of the plunging left side. And that also goes for several financial train wrecks so nicely documented by Stanford’s John Taylor going all the way back over 100 years that are featured in the highlighted foot notes. Taylor’s analysis convincingly disproves the liberals often sighted theory (excuse) that rebounds from a financial crisis are very difficult; thereby causing them to conclude back in 2009 that ITS DIFFERENT THIS TIME. Their analysis of 2009 was severely flawed in many areas.

    Check Taylor’s graphs out, I was going to try to post them right here. The difference in this plunge was not that it was financial, the difference was in the way we responded with stifling fiscal and regulatory polices that blocked a recovery that is now close to stalling.

    ITS DIFFERENT THIS TIME only because the stumblebums engineering this “recovery” screwed-up. And its starts with their multiplier that Taylor contends was not the 1.5x as peddled, but probably less than 0.5X if you include transfer payments.

  2. Jon Murphy

    Hm, it appears that several of the major financial crises have occurred on the Fed’s watch. Seems they are failing in their job.

  3. SeattleSam

    There have been only two recessionary periods that were characterized by major government interventions that created major uncertainties for businesses — now and during the 1930s. I don’t think this is just a coincidence.

  4. Reinhart & Rogoff trump Taylor.

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