Some blogs are worth reading because they offer informed but not “official” information regarding the nexus of politics and economics.  Greg Patterson’s Espresso Pundit is one such site.

His experience as a state representative, accountant, and attorney give him a breadth of experience that is worthy of attention.  While most of his focus is on local (Arizona) events, he posts some really good articles on economics that are very helpful in understanding the current situation.  One article from April stands out, which you can read here.  In it he writes:

So where are we now?  I’d like to think that the recession is long over, the recovery—although tepid—is real and that we will eventually grow out of our debt problems.  However,  I think it’s more likely that when the history of our era is written, it will start with the housing crisis then it will move up to a discussion of Fannie and Freddie…and then the banks.  The bad debt sinks the banks and they get bailed out by their governments.  But the banks eventually overwhelm the countries that bailed them out.   The sovereign debt of the less stable countries—Greece, Italy, Spain et al—hang on for a while as they are bailed out by the larger Euro Zone.  Then Europe’s united banking system fractures, followed by the collapse of Euro Zone itself.  Chinese growth slows; European growth stops and investors soon lose confidence in the US and Japan’s ability to repay future loans.  The Fed’s trillion dollar annual purchase of our own debt causes investors to lose faith in the dollar.   Investors begin to demand bond premiums similar to what they demanded of Greece in the early days of the crisis.   The US and Japan see their ability to borrow sharply reduced while stalled growth leads to a sharp reduction in revenue.  At that point the entire economic system collapses.

It could be that we aren’t even at the end of the beginning.