Daily Archives: July 29, 2011

Robin Harding

The recession of 2008-09 keeps getting worse, even now. For the second time, the annual benchmark revisions to the GDP data have shown that the recession was deeper than previously thought. The decline in GDP is now put at 5.1 per cent rather than 4.1 per cent.

By the magic of FRED, here it is in levels (green is before the 2010 revisions, blue before the 2011 revisions, red is today): Read more

This week, a cacophonous hubbub is overwhelming America’s airwaves. For with the debt ceiling deadline approaching, almost every pundit and politician worth their salt has been expressing views on what could – or should – happen next.

There is, however, one notable exception: the mighty Federal Reserve and Treasury. In recent weeks, senior officials at both institutions have warned in general terms about the risks of failing to raise the debt ceiling. They have also tried to reassure investors that this risk is small.

 Read more