Calculated Risk blogger Bill McBride is one of the clearest, most pragmatic voices out there in terms of analysis of the U.S. economy.
He posted some typically concise and on-the-mark commentary on Sunday: A few comments on dumb policy
McBride cites a number of counter-productive policies embraced or proposed in recent years that have had the effect of deepening or simply extending the conditions that led to the financial crisis and the Fed’s stimulative measures. He appropriately notes the seller-financed Downpayment Assistant Programs for FHA backed loans, the Homebuyer Tax Credit that dragged out the housing bust by at least 18 months, and other measures.
In this post he takes aim at the indiscriminate sequestration cuts that are undoubtedly hurting the economy more than they are helping control spending — while they are having real, adverse impacts on the lives of Americans, especially those who live or work on military bases. From the post, with emphasis added:
This is frustrating and embarrassing for the U.S. – and this also impacts the Fed. If we ended the sequestration budget cuts, then there would be a better chance that the Fed could taper and end QE3 sooner rather than later. Dumb policy is hurting the country right now … and if I was a reporter, I’d ask these three Congressmen [Boehner, Cantor, and Ryan] about ending the cuts at every opportunity.
For more on how sequestration is impacting residents in the Savannah area, check out this recent AP article.