As I was saying yesterday, Hoover is Happening under the stimulus. Helpful explication comes from this CEPR report, "The State and Local Drag on the Stimulus." It is coauthored by Dean Baker, he who called the housing bubble (a little early, but better early than late), and one of the Angry Ones. Also on Hoover Watch is Paul Krugman today. This eerie market calm and journalistic ambivalence is making me very nervous.
Europe is awake. In France, employees at some firms that shut facilities while making good profits are taking the CEOs hostage in their offices, and the French public mostly finds this understandable. The Eurozone is now predicted to shrink 4% this year, and a few people have noticed. Like many of France's prison guards, who blocked prisons today to protest overcrowding and declining working conditions and the suppression of posts. It's not everyday you see riot police tear-gassing protesting prison guards. But then in France, lots of prison guards belong to the old Trot union Force Ouvrière!