This is Not an Abstraction

Posted by: Sommer Saadi on June 29, 2011

That would be the nation’s debt-ceiling debate. Truth be told, it isn’t a
debate because most of us have been trained to ignore all things debt ceiling.
July Memo: this time is different and to a person, the smart people I respect
make clear this debt-ceiling time is different. Chris Krueger of MFGlobal
suggests a “critical juncture.”

I would suggest a press-conferenced President Obama captured the right
political urgency (whatever your views) and advanced the discussion by saying a
discussion is needed…now. Now can mean different things in politics,
economics and fiscal finance. I would suggest that the immediate distinction is
your given time-line upset by exogenous shocks and realities.

The outside “shock” to watch is the glide path of unemployment to 8%. That
regression suggests an arrival of 12/31/12…. which is eight Tuesdays too late for
President Obama. This is not an abstraction. Discuss.

Reader Comments

leonard waks

July 1, 2011 6:35 PM

Timing is everything. A steady decline to 8% moving into election day is good news for Obama as it kills the GOP narrative.

The absolute level is not going to be as important as the clear direction.

Obama can make the direction, and the GOP effort to stop it, an election point.

Mark

July 1, 2011 10:28 PM

Bad link I guess. And the story is unintelligible, what ever it's about.

Westernfan

August 3, 2011 10:00 PM

Here's a question I've not seen addressed: Which program created more jobs, Obama's stimulus program or the Bush Tax Cuts (and/or the extension thereof) Bonus question for extra credit: What did each of those jobs cost?

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EconoChat captures Tom Keene's thoughts on economics, finance and investment. He is editor-at-large for Bloomberg News and hosts Bloomberg Surveillance and Bloomberg on the Economy on NYC1130, Sirius 129 and XM 130 and Surveillance Midday on Bloomberg Television. His complete interviews are at Tom Keene on Demand. Look for Tom on twitter @tomkeene

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