TonyCinTX

Krugman Puzzled by Housing Asymmetry

You completely misunderstand Krugman's point; he DOES know why that is true, he is saying that Arnold King is re-inventing 1934 macro-economic theory that FAILED to understand this point and therefore treated these two situations as EQUAL.

It is clear when the referenced article is read that Krugman understands this point completely and is criticizing Arnold King (and others) for failing to understand it. This headline is as foolish and misleading as 1934 macro-economics. Either the author has a problem with reading comprehension, or just wants to bash Krugman and hopes we don't notice.

Seven Reasons the Market Has Already Bottomed

I won't believe we hit the bottom until the unemployment number turns around. And if we look at under-employment, meaning people technically "employed" but working half time or less or for less than half their peak salary, the equivalent unemployment rate is 15%.

I know the market will recover before the real economy does, but for now I don't think we have enough information on the depth and breadth of the unfunded corporate commitments to be calling a bottom. Let's wait and see what happens when we hear GM will officially enter Chapter 11, about 54 days from now (unless the Obama administration gives them an extra few months to come up with an impossible plan.)