“Wile E. Coyote moment” – Paul Krugman
Ezra Klein quotes Paul Krugman in explaining what’s happening to the market.
Investors have every justification to be fed up with American government performance. It isn’t working as is.
President Obama had the audacity to suggest that the government may not be able to pay the troops or to send Social Security checks to seniors on time. That was an unacceptable and outrageous moment that justified calling for his immediate resignation, IMO.
It should not stop there. Resignation should have been requested from every leader in Congress because they failed to produce a budget on time and failed to address the national debt problem in a satisfactory manner.
It doesn’t matter to which party they belong; they all failed the American people.
Wile E. Coyote never got it right in chasing the Road Runner. The market isn’t stupid or inept. The metaphor isn’t right.
“Why is this happening now? I tend to agree with Paul Krugman, who says the market is having "a Wile E. Coyote moment, with investors suddenly noticing just how weak the fundamentals are. Also, the mess in Europe." But more even than that, I agree with Brad DeLong, who warns, "you can go insane trying to overinterpret short-term market movements."
But if you need special powers -- or at least a special arrogance -- to confidently interpret the market's movements, no such extraordinary abilities are required for mounting a response. Ultimately, markets want economic growth. In this country, that's held back in the short-term by the jobs/demand/household debt crisis and in the long-term threatened by the hangover from the jobs/demand/household debt crisis and pressure from the mounting public debt. Our political system has been tepid and uncertain in its response to both problems. But it doesn't need to be. Something like the program Peter Orszag outlines in this Bloomberg View column would go a long way towards showing the American government can act swiftly, boldly and effectively to solve our economic problems. And I don't think there's any doubt that the markets would be comforted by that.”
“Wile E. Coyote (also known simply as "The Coyote") and The Road Runner are a duo of cartoon characters from a series of Looney Tunes and Merrie Melodies cartoons. The characters (a coyote and Greater Roadrunner) were created by animation director Chuck Jones in 1948 for Warner Bros., while the template for their adventures was the work of writer Michael Maltese. The characters star in a long-running series of theatrical cartoon shorts (the first 16 of which were written by Maltese) and occasional made-for-television cartoons.
In each episode, instead of animal senses and cunning, the Coyote uses absurd contraptions and elaborate plans to pursue his quarry.
The Coyote has separately appeared as an occasional antagonist of Bugs Bunny in five shorts: Operation: Rabbit, To Hare Is Human, Rabbit's Feat,Compressed Hare, and Hare-Breadth Hurry. While he is generally silent in the Coyote-Road Runner shorts, he speaks with a refined accent in these solo outings (except for Hare-Breadth Hurry), introducing himself as "Wile E. Coyote—super genius", voiced by Mel Blanc. The Road Runner vocalizes only with a signature sound, "Meep, Meep", and an occasional tongue noise. The "Meep, Meep" was recorded by Paul Julian.
To date, 48 cartoons have been made featuring these characters (including the three CGI shorts), the majority by Chuck Jones.”