Krugman on Why Politicians Don’t Get Debt

For much of 2011, politicians have been squabbling over how to pare the U.S.’s deficit. But Paul Krugman says they’re misguided in doing so. “This misplaced focus said a lot about our political culture, in particular about how disconnected Congress is from the suffering of ordinary Americans,” the Nobel laureate economist writes in his New York Times column. “But it also revealed something else: when people in D.C. talk about deficits and debt, by and… Read More

Icahn: For Now, Focus on Jobs, Not Deficit

While acknowledging the U.S.’s budget problems, hedge fund guru Carl Icahn says now is not the time to be focusing on reducing the country’s deficit. “I think at this time, it’s not the time to be so obsessed about the deficit as it is to put these people back to work,” Icahn tells CNBC. Icahn also defends the Federal Reserve and Ben Bernanke, saying that Bernanke “did a great job” and that the Fed “saved… Read More

Krugman: We Need a Short-Term Fix

While many say the U.S. should be focusing on long-term solutions to its debt problems, Nobel Prize-winning Economist Paul Krugman says that a more pressing need is a short-term fix for its economic engine. “When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who lectures you on the importance of maintaining a healthy lifestyle as you get older,” Krugman writes in a recent New… Read More

Ritholtz: Markets Don’t Care about Deficits

Barry Ritholtz of FusionIQ and The Big Picture blog says that markets don’t “really care at all about deficits”, something that is a “great misunderstanding”. Ritholtz tells Bloomberg that while they have long-term negatives, deficits provide fuel that drives economic activity and stock prices. He also says institutional investors are remaining on the sidelines despite the market’s recent turnaround. [youtube=http://www.youtube.com/watch?v=0z36MnxDwu4]