Time to push the panic button.
Macroeconomic Advisers is revising their tracking forecast of real GDP growth in the second quarter. It now looks as though, come July 1, that there will have been no gap-closing in the six quarters since the start of 2010.
That means that it is:
- Time for Quantitative Easing III...
- Time for pulling more spending from the future forward into the present, and pushing more taxes from the present back into the future...
- Time to use Fannie and Freddie to (temporarily) nationalize mortgage finance and fix the ongoing foreclosure crisis...
- Time for a weaker dollar...