So, the World Cup’s most famous precognitive German cephalopod, Paul, has predicted from his tank in Oberhausen that Spain will beat Holland on Sunday, leading to various death threats, offers of state protection from the Spanish government, and a proliferation of calamari recipes circulating amongst my Dutch friends on FaceBook. All of which means, surely, that it really is true that some people are hoping that the fascist octopus has sung its swan song.

I’ll get my coat.

How Obama caused the recession

by John Quiggin on July 10, 2010

The idea that Obama (or rather, the wisdom of crowds in anticipating the election of a socialist-Islamist Obama administration) caused the recession is getting another run, this time from Nobel[1] prizewinner Ed Prescott. I haven’t been able to track down more than a precis of Prescott’s argument, but I assume it’s similar to the version put forward by Casey Mulligan. I had a go at this in my Zombie economics book [2], and here on CT, so, I thought I would link to it here, to give a bit of context to the current flap.

[1] Yes, yes, I know about the Sverige Riksbank. And winners of the economics prize aren’t the only ones to say silly things later on.
[2] Still on track for Halloween, and already taking pre-orders! Join the Facebook group here.