Paul Krugman Warns Of Trump’s ‘Wile E. Coyote Moment’: ‘Policy Disaster In The Making’
HuffPost
The famed economist explained why everything may appear to be fine for America... until the moment it's really not.
Famed economist Paul Krugman warned Thursday that just because the financial markets appear to be currently calm — even amid President Donald Trump’s bid to seize control of the Federal Reserve in order to slash interest rates — it doesn’t mean an economic crisis isn’t coming for America real soon.
It’s because there’s usually “market complacency until the last possible moment,” the 2008 winner of the Nobel Memorial Prize in Economic Sciences wrote in his Substack newsletter.
“That is, markets act as if everything is normal until it’s blindingly obvious that it isn’t,” he explained.
“The current technical term for this phenomenon is a ‘Wile E. Coyote moment’ — the moment when the cartoon character, having run several steps off the edge of a cliff, looks down and realizes that there’s nothing supporting him. Only then, according to the laws of cartoon physics, does he fall,” Krugman said.
“The absence of a strong reaction to Trump’s assault on the Fed isn’t a sign that everything is OK,” he concluded. “We are, in fact, looking at a policy disaster in the making. But markets probably won’t react strongly until the disaster is already upon us.”
President Donald Trump claims tickets are "selling out fast," but photos of theaters with unsold seats for the film suggest otherwise.
The software company was alone responsible for more than two-thirds of the S&P 500's drop.
Senior administration officials had quickly seized on Saturday's fatal shooting in Minnesota as an opportunity to blame the victim.
“Georgia's a blueprint,” said Kristin Nabers of the left-leaning group All Voting Is Local.
The former Transportation Secretary highlighted some “telling” reasons involving President Donald Trump and Vice President JD Vance.
ICE staffers will only work in U.S. diplomatic offices such as the Milan consulate and "not on the ground" at the 2026 Milan Cortina Games.
The No. 3 Senate Democrat joins a growing list of senators heading for the exits.
The first lady was asked on Fox News about a moment involving the president that features in her upcoming documentary, "Melania."
The major voting bloc is saying "no, no, no," to the president, noted CNN's chief data analyst.
The Fox News moment went viral on social media for the wrong reason.
No one was injured when the driver struck a door of a building in the complex before reversing and striking it several more times.
The president pushed conspiracy theories in a series of Truth Social posts.
Shirley Raines, a social media creator known for feeding and caring for homeless people, has died at 58, according to her organization.