KRUGMAN: The smart money thinks Trumponomics is a flop.

[kpete]

Live shot of Trump economic team preparing for possible downturn 1/

..................

Neither I nor anyone else is predicting a replay of the 2008 crisis. It’s not even clear whether we’re heading for recession. But the bond market is telling us that the smart money has become very gloomy about the economy’s prospects. Why? The Federal Reserve basically controls short-term rates, but not long-term rates; low long-term yields mean that investors expect a weak economy, which will force the Fed into repeated rate cuts.

So what accounts for this wave of gloom? Much though not all of it is a vote of no confidence in Donald Trump’s economic policies. [...] Yes, the tax cut gave the economy a boost — a “sugar high.” Running trillion-dollar deficits will do that. But the boost was temporary. In particular, the promised boom in business investment never materialized. And now the economy has reverted, at best, to its pre-stimulus growth rate.


https://www.nytimes.com/2019/08/15/opinion/trump-economy.html?login=email&auth=login-email

Link to tweet

[CentralMass]

1. Moe, Larry, cheese.

[empedocles]

2. Curley was a superstar!

[CentralMass]

4. +1

[NoMoreRepugs]

3. US needs to issue a Trillion+ of new debt to fund

the Orange Douche's massive deficit - IMO that provides an opportunity for Chinese leverage. The lack of strategic thinking, or any thinking at all by the Chump administration is going to put most of us in a dire situation.

[smirkymonkey]

5. K&R

[BootinUp]

6. Krugman always glimpses the trees first. Nt