Fiscal Fitness

Here's my column from today's Roll Call.

The Bond Market Vigilantes Need To Chill Out

Here's my column from today's Roll Call.

It’s Time to Start Talking About the Budget Deficit

Note that the headline says “talking” rather than “doing” something about the federal budget deficit.

This is a critical difference. It’s still not time to take any actions that will reduce this year’s deficit. In the current economic environment, doing that when private-sector economic activity has not fully recovered would be a Herbert Hoover-like move that would be as incorrect a fiscal policy now as it was back then.

That’s not to say that there haven’t been some positive economic signs in recent weeks. Some things, like consumer sentiment and the Dow Jones Industrial Average, have been moving upward. Other statistics, like unemployment and mortgage defaults, continue to lag behind. And, while it looks good, it’s not at all clear whether the recent uptick in the Dow is real or a bear market rally.

Here's my "Fiscal Fitness" column from today's Roll Call.

Fiscal Finger Food Adds Up to One Big Feast on the Budget

This is one of those weeks when there’s time to catch up on new developments on a few items that I’ve already written about and to deal with a few stories that so far haven’t been big enough to merit a column of their own. Think of it as budget tapas, a series of small portions that are not that filling by themselves but make a complete meal when eaten together.

California Really Is Too Big to Fail. Ask yourself this question: If AIG and other Wall Street firms are considered by policymakers to be too big to fail, what does that say about California?

Here's my "Fiscal Fitness" column from today's Roll Call. Enjoy!

Here's my "Fiscal Fitness" column from today's Roll Call.