The media pompoms are out again.
In his July 28 “Street Sweep” blog, Fortune.com reporter Colin Barr highlighted a paper by Moody’s Analytics claiming government stimulus funds “averted what could have been called Great Depression 2.0.” The paper was authored by notorious spending-advocate Mark Zandi and Keynesian sympathizer Alan Blinder of
“What makes the current 9.5 percent unemployment rate look good?
How about one that reaches 16.5 percent? A paper by Moody's economist Mark Zandi and
Barr heralded the paper as a much needed “endorsement” for another stimulus package given the country’s current financial situation:
Not until the second to last paragraph did Barr mention Zandi’s 2008 prediction that unemployment would hit 10 percent without a stimulus package. Barr noted:
Despite Zandi and Obama, unemployment did reach 10 percent even with the stimulus package that would supposedly keep it under eight percent. Furthermore, the stimulus package increased the national debt and created a negative business environment.