The jumps in rates of borrowing to rates of saving for young people are huge, and Moody’s economist Mark Zandi thinks it’s because we’re scared, which: we are. Yes. That is a true assumption. “It is unclear how long this heightened risk aversion will last, but I suspect the last few years will have an indelible impact on how younger households think about their finances.” NO DUH MOODY’S.
Heidi N. Moore has lots to say—and nothing good—about the fiscal cliff deal (“deal”) passed by the Senate early Tuesday morning: “So, after a day, and week, and year filled with manufactured drama, the US Senate not only failed its only goal – reducing the US deficit – but also built a mountain range out of the molehill of budget talks.”
And if you’re in the mood for more good (“good”) news, her piece about the longterm unemployed and how a real deal likely wouldn’t help them anyway is a doozy (“The predicament of the long-term unemployed only has a passing relationship to the fiscal cliff. There happens to be no one in the government who can put their hand up and protect the unemployed”).
Jordan Weissmann argues for increasing immigration to grow the economy because we need young people and people who will have babies and also skilled workers, which, ha, WE DON’T HAVE. Scientists! Engineers! And lest you think we don’t need more breeders: “Just ask Japan what it’s like when your country turns into a nation-sized nursing home.”