OK, it took me three reads to get to where I thought I understood this article from Paul Krugman, but it’s worth understanding the montetary policy side of the current financial crisis.  Typically, when the economy gets into trouble, The Fed simply produces more money, which increases inflation and helps bouy unstable markets.

That’s what they usually do.  However, in this case the T-bill market is in bad enough shape that it’s not capable of helping out in any way.  Krugman does a really wonky job of explaining it.  It’s worth the multiple reads, honest.

And Chuck Schumer says “get off the laize-faire boat.” That and more in a new article on WaPo:

Jobless Rate Hits 5 Percent, 2-Year High - washingtonpost.com

Basically, if you’re a professional or businessman, nurse or waitress, you’re fine. If you work in any of the professions that make up the largest share of workers in this country, you’re on the chopping block. And George Bush says, “we’ll wait and see” how this pans out.