Friday, November 14, 2008

I'm A Bit Less Optimistic

Krugman:

The economic news, in case you haven’t noticed, keeps getting worse. Bad as it is, however, I don’t expect another Great Depression. In fact, we probably won’t see the unemployment rate match its post-Depression peak of 10.7 percent, reached in 1982 (although I wish I was sure about that).


I'm actually more worried than I was. Appropriate federal intervention - not bailing out Hank's buddies - is necessary and hasn't been forthcoming. State and local governments are going to be cutting budgets and laying off people without help.