by Mark Thoma, University of Oregon (Department of Economics)

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The Second Derivative is Bad

Posted on June 26, 2009

John Hempton is feeling just that little bit less certain that the rate of deterioration in the economy has slowed:The second derivative is bad, Bronte Capital: I have been firmly in the second derivative is good camp for some time. Green shoots were few and far between but the economy no longer appeared to be in free-fall. ...The data I considered most persuasive was the delinquency data at Fannie and Freddie. It gets worse every month, but until the last data point it was getting worse at a decreasing rate (especially if you adjusted for the foreclosure moratoriums they implement...

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economy