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Monday, July 13, 2009

The Undismal Weekly Wrapup -- July 5-11, 2009

Analytical Summaries of Key Stories of the Week on Economics and Public Policy

A Possible Bailout for Small Business (Forbes)
Brian Wingfield reports on the possibility, currently under consideration by the Obama administration, of making a portion of the original $700 billion TARP allocation available to aid small enterprises via the small business administration.

Do We Need Another Stimulus? (Washington Post)
Economists and politicians weigh in on the issue, including: Robert Reischauer, President, The Urban Institute; Rep. Donna Edwards (D-Maryland); Rep. John Boehner (R-Ohio), House Minority Leader; Mark Zandi, Chief Economist, Moody’s Economy.com; Martin Feldstein, Professor of Economics, Harvard University; Dino Kos, Former New York Fed Executive Vice President; Douglas Holtz-Eakin, Former Director, Congressional Budget Office; and Lanny Davis, Former Special Counsel to President Clinton.

Fed's Stern: First Stage Of Recovery 'Close At Hand' (Wall Street Journal)
Michael S. Derby reports on comments by Gary Stern, President of the Minneapolis Fed, who cites positive indicators in consumer spending, manufacturing, and housing sales, while also cautioning about the possible pitfall of asset price instability, which could hinder the recovery and is difficult to control through the Fed’s normal monetary policy arsenal.

How Did California Get Into This Mess? (Los Angeles Times)
Examining the complex, multifaceted causes of California’s budget crisis, John Vasconcellos contends that there’s plenty of blame to go around, not only in the realms of government but also among California voters, whose contradictory support of both tax reductions and increased services placed the state government in a quandary.

The Stimulus Trap (New York Times)
Commenting on the political predicament President Obama may soon find himself in amidst declining public confidence in his economic policies, economist Paul Krugman makes the case that the current best option is to pause and observe, giving the original package time to work, while simultaneously evaluating options for strengthening the current policies should they prove to have been insufficient.

Weekend Opinionator: Is GM Back from the Dead? (New York Times)
Tobin Harshaw explores opinions from various analysts on what’s in store for General Motors after a fast-track emergence from bankruptcy. Sphere: Related Content

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