Morning Roundup: Thoughts on the Young New Year

  • A broad section of America is pretty pessimistic about what 2011 will bring, economically speaking. However, a smaller subset of the citizenry, known as “investors,” believes we’re on pace for growth and that the economy may even overheat this year. [WSJ]
  • Paul Krugman is cautioning jobless Americans against getting too excited about this year’s economy, and he may be on to something. [Calculated Risk]
  • Goldman Sachs is buying a chunk of popular social-networking site Facebook. The transaction values the company at $50 billion. [NYT]
  • Some boom-era subprime lenders have refashioned themselves as helpful loan modifiers in the wake of the housing crash. This is kind of like owning a car dealership that sells lemons, and then later starting an auto-repair business. Authorities are investigating. [AP]
  • Council of Economic Advisors head Austan Goolsbee says the government better raise its own debt ceiling or the economy will suffer a catastrophe. Presumably this new catastrophe will supplement the existing catastrophe that’s emerged over the past three years. [Bloomberg]

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