Wednesday, March 23, 2011

Sunday, March 6, 2011

Housing bubble

Paul Krugman, 2002:

"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 ... Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

Brilliant idea, mission accomplished, that turned out so well.

Maybe the thinking goes something like this: Feed the goose that lays the golden eggs to the people, and hope they vote for you during the feast, before they realize where the meal came from.