Economists warn cuts to federal spending ill-timed

by Guest Mon Aug 01, 2011 7:06 am

“Unemployment will be higher than it would have been otherwise. Growth will be lower than it would be otherwise. And inequality will be worse than it would be otherwise,” Mohamed El-Erian, chief executive of the bond investment firm Pimco, said Sunday on ABC. “We have a very weak economy, so withdrawing more spending at this stage will make it even weaker.”

The agreement would end months of single-minded debate about the federal debt that has diverted Washington’s attention from broader economic questions, and indeed threatened the health of financial markets as investors watched and wondered whether the United States might really decide, quite voluntarily, to leave some bills unpaid.

http://www.msnbc.msn.com/id/43966345/ns/politics-the_new_york_times/

by stillnutty Mon Aug 01, 2011 8:30 am

They will slap themselves on the back this week, after once again protecting the top 2 percent while gutting much needed social programs. THEN THEY WILL GO ON THEIR MONTH LONG VACATION!!

by rprp Mon Aug 01, 2011 9:14 am

DesperateinRI, I just want to thank you so much for what you do here to bring these important links to the forum.

Now I am just spitting angry, especially after reading that article and see that advertisement or video of what this is going to do to the "markets." You know what? If the average Joe is going down, let everyone and that includes anyone in the markets go down with the ship as well. THEN, we might see some actual action taken to fix this broken capitalist society.