Whether an economic depression now is harder or easier on us, there won’t be many jumpers this time. The windows don’t open now.
New York Times
March 24, 2008
With Economy Tied to
Wall St., New York Braces for Job Cuts
By LOUISE STORY
But now, as the city braces for a big contraction in the financial sector as a result of the credit crisis and the collapse of Bear Stearns, the fallout could be worse than in the past.
Last year, the finance industry was responsible for nearly a third of all wages earned in the city, the highest in modern times. And each Wall Street job supports three workers in other sectors.
A great many of the 14,000 employees of Bear Stearns are expected to lose their jobs because of the firm’s cash shortage and its pending acquisition by JPMorgan Chase. As the credit crisis unfolds and other firms discover the depths of their losses related to bad loans, few expect the layoffs to stop there.
“Up to this point in
Read more at:http://www.nytimes.com/2008/03/24/business/24jobs.html?scp=1&sq=With+Economy+Tied+to+Wall+St.%2C+New+York+Braces+for+Job+Cuts+&st=nyt
New York Times
March 24, 2008
Taming the Beast
By PAUL KRUGMAN
We’re now in the midst of an epic financial crisis, which ought to be at the center of the election debate. But it isn’t.
Now, I don’t expect presidential campaigns to have all the answers to our current crisis — even financial experts are scrambling to keep up with events. But I do think we’re entitled to more answers, and in particular a clearer commitment to financial reform, than we’re getting so far.
In truth, I don’t expect much from John McCain, who has both admitted not knowing much about economics and denied having ever said that. Anyway, lately he’s been busy demonstrating that he doesn’t know much about the
Yet the McCain campaign’s silence on the financial crisis has disappointed even my low expectations.
And when Mr. McCain’s economic advisers do speak up about the economy’s problems, they don’t inspire confidence. For example, last week one McCain economic adviser — Kevin Hassett, the co-author of “Dow 36,000” — insisted that everything would have been fine if state and local governments hadn’t tried to limit urban sprawl. Honest.
On the Democratic side, it’s somewhat disappointing that Barack Obama, whose campaign has understandably made a point of contrasting his early opposition to the
The war is indeed a grotesque waste of resources, which will place huge long-run burdens on the American public. But it’s just wrong to blame the war for our current economic mess: in the short run, wartime spending actually stimulates the economy. Remember, the lowest unemployment rate
Hillary Clinton has not, as far as I can tell, made any comparably problematic economic claims. But she, like Mr. Obama, has been disappointingly quiet about the key issue: the need to reform our out-of-control financial system.
Let me explain.
Read more at:http://www.nytimes.com/2008/03/24/opinion/24krugman.html?hp