Sunday, January 13, 2008

Blitheringly Obvious

Good grief! This is the lead story in the New York Times? Seriously, this is the best they can do?

As leaders in Washington turn their attention to efforts to avert a looming downturn, many economists suggest that it may already be too late to change the course of the economy over the first half of the year, if not longer.

Of course it's too damn late to change anything in the next 6 months.

Interest rate changes take 18 months to work through into the broader economy. Tax changes won't be made until the next budget year, the same is true for fiscal stimulus through higher spending.

So how come something that is blindingly obvious to anyone who has ever cracked open a macro textbook becomes the lead story in the New York Times?

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