I believe this thinking was predicated on there being an actual economic recovery -- a recovery does wonders for a government's balance sheets. It never occurred to Yglesias -- or, for that matter, anyone in the White House -- that....
Excessive debt, high unemployment, ballooning budget deficit: any way you look at it, these are not the makings of a sustained economic recovery, no matter what the White House and various self-proclaimed financial experts tell us. Read Post
This will not surprise anyone who is familiar with Richard Koo and his work on balance sheet recessions, and his exhortations to use government deficits to balance out a deleveraging economy, but just in case... the Nomura economist... Read Post