Need Econ Gurus Again!

[Annie]

Is this 'analysis' correct?

Instapundit » Blog Archive » OH, GOODY: Treasury in plans for record debt sale. “The US Treasury on Wednesday opened the floodg…

FEBRUARY 4, 2009
OH, GOODY: Treasury in plans for record debt sale. “The US Treasury on Wednesday opened the floodgates of government bond issuance, revealing plans for a record debt sale in February and more frequent auctions in the months to come. The announcement came amid growing fears about US government deficits and sent the yield on the benchmark 10-year Treasury note rising to 2.95 per cent, up from just over 2 per cent at the end of December. The rise in Treasury yields has been pushing mortgage rates higher, complicating efforts to revive the economy.” So the “stimulus” is now a drag on the housing market. . . .

 

[Agnapostate]

I'd say not, and recommend that you pursue radical economic sources as opposed to orthodox ones, as socialist heterodox economists predicted this current decline almost a decade ago. It is more likely that essentially all problematic developments are related to declines in profit rates, as has been indicated by past analyses. (Weisskopf 1979, Wolff 1986, Dumenil and Levy 1993, Shaikh and Tonak 1994). The state has traditionally kept capitalism afloat...I'd recommend looking past the "free market."