The econ chart that should worry David Axelrod and the Dems

July 9, 2009

Brad DeLong worries that the downturn in bond yields is hinting at an anemic economic recovery.

A recovery in which unemployment is higher two years later than when
the recovery began is not much of a recovery. And I don’t see what is
going to keep the probability of such an eventuality low.

The lower are ten-year Treasury interest rates, the more are people
trading in the bond market willing to bet their money that the future
holds that kind of non-recovery recovery. And so I worry.

Me:  Think a second stimulus would change that trajectory? Remember that the 2001 Bush tax cuts were considered to be almost perfectly timed stimulus.



We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see

Would someone please tell Brad DeLong how to avoid passive voice when he writes.

Government exacerbates the economic problems with all their legislation because people who MIGHT invest and hire don’t know which “winner” firms the government will decide to back, which taxes will creep in to pay for stimulus now, etc.

Uncertainty becomes a powerful enemy. “All we have to fear is fear itself.” Oh, yeah… and government intervention.

Posted by Insiderman | Report as abusive

A second Stimulus Plan from the same people that produced the first Stimulus Plan? Just say no!

The first Stimulus Plan is devoid of Political-Economy and is based on Political-Political. A dangerous proposition.

Recall the first Stimulus plan and change the “design”.

Posted by William Heasley | Report as abusive

Recall the first Stimulus Plan. The “design” is the problem.

The first Stimulus is not based on Political-Economy. Rather its based on Political-Political.

Posted by William Heasley | Report as abusive