A turnaround?

A theme of this blog has been that the Administration's efforts are working to avert a greater economic catastrophe than what we've been though. In essence, the bad news is getting less bad. To be sure, the closer you look at any one initiative the more apparent the flaws. But taking a step back it sure looks like the combination of massive fiscal stimulus, a herculean Fed easing and a number of homeowner restructuring initiatives is working. Certainly, that's the message in the stock market.

We are still a long ways away from the job market improving, and the economy remains extremely fragile. The mantra "the bad news is less bad" is hardly rousing information except compared to what appeared to be forming--another Great Depression, 21st century style.

Paul Krugman has been a fierce critic of the Administration. Krugman has also been essentially right on the economy for the past three years or so. That's why I found this line toward the end of his latest column striking: "Credit where credit is due: President Obama and his economic advisers seem to have steered the economy away from the abyss."

The column focuses on stagnant to falling wages.