If you're looking for reason to become very worried about the state of the economy, read Paul Krugman's column today about ominous developments in the financial markets. (I know, I know, he's predicted nine of the last zero recessions or whatever, but that doesn't mean he's wrong this time!) Gloomy though the column is, I was at least pleased that Krugman seemed to be back to doing what he does best--make economic developments intelligible to us normal folks--and that he managed to make it through an entire column without bashing Barack Obama. Then I reached the last paragraph:
Nobody wants to put taxpayers on the hook for the financial industry’s follies; we can all hope that, in the end, a bailout won’t be necessary. But hope is not a plan.
An impressive pivot.