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Monday, December 28, 2009

Paul Krugman: 'Reasonably High Chance' Economy Will Contract Second Half of Next Year



First Posted: 12-27-09 12:28
PM | Updated: 12-27-09 01:12 PM

Economist Paul Krugman said on Sunday that there's a "reasonably high chance" the economy will contract in the second half of next year.

Appearing on ABC's "This Week," Krugman said he agreed with fellow economist and Nobel prize winner, Joseph Stiglitz.

Double dip Recession? 

"The things we know about are all gonna be negative in the second half of next year," he said. But he said the chance, while significant, was "less than fifty-fifty odds."

"I would basically go with Joe Stiglitz," Krugman added, "I'm really worried about the second half."

Krugman agrees with Stiglitz a second stimulus bill may be needed to counter the effect of a possible double dip recession. Undoubtedly, the right wing will have a cow about this.

In addition, the Bush tax cuts are about to expire. The right wing will be making a lot of noise about the tax cuts that doubled the national debt. George W. Bush was the only president  who cut taxes for his 'have mores' base during a war.


source: http://www.huffingtonpost.com/2009/12/27/krugman-reasonably-high-c_n_404315.html

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