Juggling Dynamite

Martin Feldstein, an economics professor at Harvard University, talks about U.S. fiscal policy and the prospects for delaying automatic spending cuts scheduled to start March 1.Here is a direct link.

Danielle was a guest today on Talk Digital Network with Phil Mackesy talking about recent developments in the world economy and markets. You can listen to an audio clip here.

“Economist Nouriel Roubini of NYU’s Stern School of Business tells The Daily Ticker that it’s not only monetary stimulus by the Fed that’s been driving stocks higher but also “more unconventional monetary policy” from the ECB, Bank of Japan, Bank of England and the Swiss National Bank. That stimulus is aimed at boosting economic growth and it may have helped, but the global economy is slowing.

In the fourth quarter, the major economies of the U.S., U.K, Japan and the Eurozone all contracted and they could slow even more because of spending cuts, says Roubini. “The core of the Eurozone has to do it, the U.S. has to do it…and when you have synchronized fiscal contraction the negative effects on economic growth are worse.”

Here is a direct link.