Iiiiiiiiit's - Krugman Monday!

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Dungheap said:
So June 2011 - September 2012, the end of QE2 to the announcement of QE3, isn't sufficient time for market forces to impact the price of Treasuries? And iI'm not seeing the "market corrections" that account for the steep drop in Treasury rates over that period. Sure, the market took a hit at the end of July 2011, but as it rebounded there was little impact on Treasury rates:

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Again... the market corrected as you stated... the stock market did not recover back to the June 2011 levels until when? Oh yeah, early summer of 2012. Take a look at what yields did from the point of that breakout to the announcement of QE3. Then take a look at what happened right after QE3.
 
Superfreak said:
Yes you did. You gave me decreases in 7 countries from 2010-2011. One year declines... none were the 'harsh' austerity that you proclaim occurred that subsequently hurt growth in Europe. How many of those 7 are still above 2009 levels? From the start of the crisis, how many have actually cut spending?
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Not all were 1 year declines. Some were, others weren't. And, given the rates of unemployment in some of those countries and the need for public assistance, the cuts are indeed harsh. I gave you the data. you can check for yourself which countries meet your arbitrary definition of austerity.


Superfreak said:
If you think you a one year 0.05% cut in the Euro area is significant enough to be 'harsh' and causing chaos/economic malaise... well, then you are right in line with Krugman.
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Yeah, it must be something else that has given rise to yet another recession. It can't possibly be that the people that predicted that cuts in spending willl lead to another recession simply got it right.

And you're not taking into account the fact that the EU27 includes quite a few countries that haven't bought into the collective insanity and that have increased spending substantially, like the Swedens and Finlands and Switzerlands.


Superfreak said:
I agree some have cut from 2010 to 2011, I appreciate you providing the data. However, there were no drastic cuts or harsh measures even in that one year in the seven countries.

Where is the harsh austerity you have mentioned in the past?
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How kind of you to acknowledge facts. Quite refreshing, really.

Look, we disagree as to what constitutes harsh and counterproductive austerity. That's OK. I'm cool with it. Just don't pretend that the facts aren't facts.
 
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