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.

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