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Zero Hedge wrong again


Zerohedge cannot make sense of their own charts. Let ZH enter trading orders at your own risk.

I know this is a “sky is blue” kind of post, but this post is simply delusional, and proves itself wrong.  It’s worthy of notice because its own charts proves its point wrong. When the stimulus was being debated, the top unemployment rate was expected to be 9%.

As Zerohedge’s own chart shows, the unemployment rate was almost higher than 9% by the time Obama took office.   In other words, the initial baseline projection should have been at least – at least – a full two points higher. I am not sure how to argue with such a lack of logic, so I’ll just mock it.  Ha! Yer dumb, Zerohedge!  You can’t even read your own charts!  I wouldn’t let you within 10 yards of a trading desk, because you can’t read simple graphs!  Yer dumb!

 

Update:  This old post from some crazy guy named “mickslam” says that the stimulus needed to be $1T to $1.6T.  He then said that the proposed stimulus was far too small.  He said this about 2-3 weeks before the estimable Prof. Krugman.

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  1. beowulf
    June 8, 2011 at 12:17 pm | #1

    TC, compare that chart to the unemployment rate projections that Wynne Godley and his colleagues at the Levy Institute published in December 2008 “Strategic Analysis” ( page 4 of pdf, see “Figure 4 output gap and unemployment”).
    http://www.levyinstitute.org/pubs/sa_dec_08.pdf

    In Wynne’s chart, baseline estimate is black line. In the event, Obama’s stimulus package ($700 billion over two years) was approximately the size as Wynne’s $380 billion (in one year) “shock 1″ plan (red line), and half the size of his $760 billion “shock 2″ (blue line). Once you factor in that stimulus spending was slow out of the gate (rules to live by, there is no such thing as a “shovel-ready” govt project). ZH’s handwritten “reality line” tracks with Wynne’s baseline estimate until it drops into his shock 1 track.

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