Some crisis links (12.4.2008)

Mike Whitney reminds us that "America's free market system is now entirely dependent on state resources," thanks to the economic crisis and the willingness of the market fundamentalists to abandon laissez faire in theory and practice. He goes on to point out that

Our present dilemma can be traced back to the 1980s — the Reagan era — and the rise of an organized, industry-funded movement, which advanced their business-friendly, "trickle down" ideology which, when put into practice, has led to greater and greater income disparity, unprecedented expansion of credit and, ultimately, economic disaster.

Nouriel Roubini seemingly cannot find a limit to his pessimism. His most recent summary judgment: "The US and the global economy are at risk of a severe stag-deflation, a deadly combination of economic stagnation/recession and deflation." He then warns that

The worst is not behind us: 2009 will be a painful year of a global recession, deflation and bankruptcies. Only very aggressive and co-ordinated policy actions will ensure the global economy recovers in 2010 rather than facing protracted stagnation and deflation.

ATT, DuPont and Credit Suisse will cut jobs, according to reports (see this, this, this and this).

Bloomberg reports that Americans are collecting unemployment benefits at number greater than any seen since 1982.

Harvard's endowment, the largest education endowment, reports suffering a massive loss (22%), according to the Wall Street Journal.

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