1--Are jobless claims signaling a double dip? (apparently not) Edward Harrison, credit writedowns (Key) "Before the Great Depression in 1929, the U.S. had nominal GDP of $103.6 billion. By 1933, this had dropped to $56.4 billion due to deflation and a decrease in production. Over the next four year, GDP growth soared. It was 17.0% in 1934,11.1% in 1935, 14.3% in 1936 and 9.7% in 1937. That’s some serious growth, right? Well, GDP was only $91.9 billion in 1937, a full 11.3% lower than it had been 8 years earlier. In fact, it wasn’t until 1941 that we attained the nominal production output of 1929.
What this should illustrate is that working from a lower base makes an increase in GDP comparatively easier than when working from a higher base. Yes, it was a powerful recovery, but it did not get the United States back to the same productive level for many years. In that sense, recovery does not mean recovery immediately."
2-- Oops At The OECD, Paul Krugman, New York Times
3--Boehner Proposal Would Cut Non-Security Discretionary Programs 22 Percent, the Deepest Such Cut in Recent U.S. History, Center on Budget and Policy Priorities (The "presumed" next speaker of the House is seriously bonkers)
4--Obama should follow in FDR's footsteps, Nick Taylor, LA Times
5--Trichet Says Will `Take Time' to Wean Banks Off Emergency ECB Liquidity, Bloomberg