Author Topic: Krugman Busted  (Read 938 times)

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Offline Allentownjake

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Krugman Busted
« on: September 08, 2010, 07:04:49 AM »
http://www.zerohedge.com/article/how-keynesian-archduke-krugman-recommended-housing-bubble-solution-all-americas-post-tech-bu

The year is 2002, America has just woken up with the worst post dot.com hangover ever. Paul Krugman then, just as now, writes worthless op-eds for the NYT. And then, just as now, the Keynsian acolyte recommended excess spending as the solution to all of America problems. Only this one time, at band camp, Krugman went too far. If there is one thing that everyone can agree on, is that the Housing Bubble, is arguably the worst thing to ever happen to America, bringing with it such pestilence and locusts as the credit bubble, the end of free market capitalism, and the inception of American-style crony capitalism. Those who ignored it, even though it was staring them in the face, such as Greenspan and Bernanke, now have their reputation teetering on the edge of oblivion. So what can we say of those who openly endorsed it as a solution to America's problems? Enter exhibit A: New York Times, August 2, 2002, "Dubya's Double Dip?" Name the author: "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." If you said Krugman, you win. Indeed, the idiocy of Keynesianism knew no bounds then, as it does now. The solution then, as now, to all problems was more bubbles, more spending, more deficits. So we have the implosion tech bubble: And what does Krugman want to create, to fix it? Why, create a housing bubble... Well, at least we know now how that advice played out.
I hope we shall... crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." --Thomas Jefferson to George Logan, 1816.

Offline Rick

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Re: Krugman Busted
« Reply #1 on: September 08, 2010, 09:38:50 AM »
So what bubble do you see being created now.

Online thundley4

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Re: Krugman Busted
« Reply #2 on: September 08, 2010, 10:01:10 AM »
So what bubble do you see being created now.

College loans?

Offline Rick

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Re: Krugman Busted
« Reply #3 on: September 08, 2010, 10:05:22 AM »
I'm thinking "industrial/Military", lots of money to be made there.

Offline Allentownjake

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Re: Krugman Busted
« Reply #4 on: September 08, 2010, 10:08:51 AM »
Treasury bonds
I hope we shall... crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country." --Thomas Jefferson to George Logan, 1816.

Offline SSG Snuggle Bunny

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Re: Krugman Busted
« Reply #5 on: September 08, 2010, 10:22:36 AM »
Treasury bonds
concur


So how do you see us crawling out from under these bonds?

A. print a shit-ton of money to deflate their value

B. jack-up taxes and ride-out the ensuing economic stagnation

C. pick a war with larger holders so we can default and call it "all's fair in lovin' whores"

D. ???

E. all the above
According to the Bible, "know" means "yes."