New Nobelist Paul Krugman blogs for the NYT today:
Worries about next yearYou don't say!
Iâ€™ve been ruminating over economic prospects for next year, and Iâ€™m getting scared.
1. The economy is falling fast. Weâ€™ll see what tomorrowâ€™s employment report says, but we could well be losing jobs at a rate of 450,000 or 500,000 a month.
2. Infrastructure spending will take time to get going â€” a new Goldman Sachs report suggests that projects that are â€?shovel-readyâ€? are probably only a few tens of billions worth, and that a larger effort would take much of a year to get going.