Quote Of The Dayby Brad Warbiany
Krugman, in 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, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble.
Krugman said then that we needed to reinflate the bubble to save ourselves. We did, and we didn’t.
Now he says it’s time for Keynesian stimulus far bigger than what we’ve already done. He’s just as wrong as he was then.
Hat Tip: TJIC