It is now clear that most economists underestimated the widening economic impact of the credit crunch that has shaken U.S. financial markets since at least mid-July. A credit crunch is an economic condition in which loans and investment capital are difficult to obtain. In such a period, banks...

Whalen evaluates the political and economic arguments in favor of a constitutional amendment requiring a balanced budget. He concludes that although today's federal budget process needs reform, the balanced budget amendment is not a solution. In fact, such an amendment would divert attention...