- There seems to be little doubt among most economists that the current crisis will require some sort of massive stimulus, which will add to the enormous deficits that the Bush Administration piled on unnecessarily throughout its time in office. The question is whether this will eventually lead to a spike in interest rates as the U.S. chases sufficient bond purchasers to hold its debt. Right now, flight to quality and deep uncertainty in the markets is allowing the U.S. to finance its debt on the cheap. However, once a recovery begins it may become necessary to offer much higher interest rates on U.S. bonds to attract foreign investment. This, in turn, could increase the cost of corporate borrowing and inhibit investment in the equity market. Hopefully this will not inhibit long term economic growth.
- It is not yet clear who is behind the horrifying events in Mumbai and what motivated the attacks. I am wondering if it may have stemmed from the Indian control over Kashmir, which may in time be seen as on a par with the Israeli-Palestinian conflict in terms of its destabilizing quality and its spillover effect on the rest of the world.
- I was just starting to get over my bad feelings about the Lieberman reprieve when I read about Holy Joe contributing money to Republican candidates for the Senate. Now I'm really pissed off again.
- One of the true joys of being a right winger must be the fact that you never have to admit an error, either as a supporter of the Iraq War or an economic Pollyannna. Evidently there is nothing these people can do to permanently discredit themselves.
- Happy birthday to Nick Beaudrot who turns 29 tomorrow. I, on the other hand, am off to my 30th high school reunion this evening. I can't quite believe that I graduated from high school before Nick was born.
