Tuesday, August 25, 2009

White House admits Recession worse than previously reported

While I admit there is never a "good" time to admit you're broke, it seems suspicious that the day after the president leaves on vacation and essentially ends press conferences is the day the White House releases a report showing MUCH larger deficits and a FAR worse economy than previously admitted.


There are two possibilities:
1. The economy was worse than we knew, or
2. The actions taken since the last estimate have made it worse by eroding consumer and lender confidence.

I tend to think the latter is true, but I am certainly open to arguments for #1.

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