 Ladies and Gents, Your 2008 Nobel Prize Winner For Economics..
..and model for JS's living room fathead posters, Paul Krugman: Quote: |
The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. | Good grief.
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"For liberals, the observation that "the peasants are revolting" is a pun. For conservatives, it is cause for uncharacteristic optimism. No matter how far the ideological pendulum swings in the short term, in the end the bedrock common sense of the American people will prevail." --Charles Krauthammer | 
07-03-2009, 02:27 PM
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