Dept. of I Told You So, Economics Division

Prospects of economic recovery in the near future are now being dismissed scornfully by private-sector financial analysts.

Three weeks ago, I noted Paul Krugman’s observation that, once the Fed cut rates to zero, we had reached the limits of monetary intervention. Between the TARP bailout and the massive “stimulus” passed in February, we may have reached the feasible limits of fiscal intervention. And none of this has produced recovery, nor even any realistic hope of recovery any time soon.

The situation is not yet catastrophic, but . . . well, give them time. If the Democrats get what they want (the Waxman-Markey energy tax, socialized medicine, and another stimulus) it may suffice to bring about a Zimbabwe-style meltdown.

UPDATE: Welcome, Instapundit readers. This morning the professor adds a gloom-and-doom roundup, including Daniel Indiviglio’s estimate that the actual unemployment rate is already 12 percent.

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