The Daily Parker

Politics, Weather, Photography, and the Dog

Krugman predicts recession

Paul Krugman's column (sub.req.) today offers a bleak assessment of 2007:

Right now, statistical models based on the historical correlation between interest rates and recessions give roughly even odds that we're about to experience a formal recession. And since even a slowdown that doesn’t formally qualify as a recession can lead to a sharp rise in unemployment, the odds are very good—maybe 2 to 1—that 2007 will be a very tough year.
Luckily, we’ve got good leadership for the coming economic storm: the White House is occupied by a man who’s ideologically flexible, listens to a wide variety of views, and understands that policy has to be based on careful analysis, not gut instincts. Oh, wait.

I feel better; how about you?

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