Republicans and Democrats ... usually find some mutually acceptable midpoint and enact a stimulus package. Even in today's hyperpartisan Washington, the odds still favor such a deal.'Spouses' should read 'spice.' I'm not sure why that hasn't caught on. You'd think gambling on the spread of a plural change like that would be safe as hice.
This time, though, don't expect that to be the end of the story -- because the coming recession will not be normal... because we face an economy that's been warped by two developments we've not seen since FDR's time.
The first of these is the stagnation of ordinary Americans' incomes, a phenomenon that began back in the 1970s and that American families have offset by having both spouses work and by drawing on the rising value of their homes. With housing values toppling, no more spouses to send into the workplace, and prices of gas, college and health care continuing to rise, consumers are played out.
Wednesday, January 16, 2008
Link from the Housing Bubble Blog: