
I’m holding off a bit on the GM bankruptcy coverage – look for that on Monday. This weekend, I’ve just been reading threats to the recovery in the US, like unemployment passing 9% (remember, even though the first half of the consumer-driven-economy equation is consumer confidence, the second half has to be the consumer having actual money to spend) and World Bank prez Robert Zoellick’s cautionary analogies that suggest worldwide stimulus plans aren’t going to fix this important problem:
World Bank President Robert Zoellick warned policy makers that fiscal-stimulus plans are insufficient to turn around the “real economy” and rising joblessness threatens to set off political unrest across the globe.
“While the stimulus has given an impulse, it’s like a sugar high unless you eventually get the credit system working,” Zoellick said in an interview yesterday with Bloomberg Television’s “Political Capital with Al Hunt.” “When unemployment increases, that’s probably the most political combustible issue.”
Zoellick remains mostly bullish on the loller dollar, and most cautious on Eastern Europe (do they eat a lot of candy over there?), for the time being. We suggest a furthering of the analogy, where the state of things once the ‘sugar rush’ wears off becomes known as ‘economic diabetes,’ and the economy has to be sustained by ‘printing press insulin’ because you know how violent people get when their blood sugar gets low, or something like that. And now, we’re going to go eat some waffles with powdered sugar.


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