Video from The Daily Show is here, with special bonus footage of a skunk with his head stuck in a peanut-butter jar. Cute. But what’s missing is the most important thing: Stewart never says that what’s most objectionable about the debt deal is that it fails to provide more fiscal stimulus now. In fact, it does the opposite. The deal is contractionary. It will increase unemployment, drag down GDP. The markets are beginning to figure this out. That’s why stocks went down roughly 2.5% today. Brad DeLong is on record as saying that the odds of a “double dip” recession have now risen to 50-50. What an extraordinary failure of our political system to produce the correct policy response.
[Thanks to LK for the heads up.]