Reality Bites

Economist John Taylor of Stanford has a measured take in WSJ today about the recent evolution of the recession. Well worth your time.

Also, some tasty snark from Rick Moran over at PJM:

The truth should be dawning on all of us just about now that Democrats, Republicans, economists, Wall Street wizards, and even the high priests of monetary policy at the Federal Reserve have no idea how bad things are going to get or whether anything Congress does can improve the situation — much less stave off disaster. And that means that the only thing we have to hang our hats on is the credibility and trustworthiness of the president of the United States.

Instead of instilling confidence, Obama is selling fear. Instead of raising us up, he is crushing us with his rank appeal to partisanship. Instead of statesmanship, we get gimmicks like his stimulus bill that the Congressional Budget Office tells us will harm the economy in the long run.

It is amazing and frightening to think that less than three weeks into his presidency, Barack Obama is at risk of losing his credibility as a leader by threatening disaster unless his will be done. He may very well get what he wants when Congress passes this monstrosity despite it monumental flaws.

But at what cost?