The economy just got sent to the ICU, as Krugman and Stiglitz predicted all along. And the debt deal, whatever form it takes, won't do a thing to help the economy, and will actually likely suppress growth even more.
There's going to be a bloodletting the next election. I wouldn't be surprised if we lose the White House and the Senate, while the GOP loses the House. And regardless of what I want to happen in the election, with no one focusing on the economy I'm not sure an all-around bloodletting isn't deserved.
From MarketWatch:
A new government report on the nation’s output showed the economy in much weaker shape than anticipated, casting doubt on the strength of the expected recovery in the final six months of the year.
Gross domestic product expanded at a paltry 1.3% annual rate in the second quarter, the Commerce Department said Friday, below the 1.6% growth rate that economists anticipated. See MarketWatch economic calendar.
But it was a drastic downward revisions to first-quarter GDP that stole the show and set economists on edge.
